Consumer confidence in the US took a hit in February, with the Consumer Confidence Index falling to 98.3 (from 105.3) according to the Conference Board. The index fell to its lowest level since June 2024.

Consumers' views of current business and job market conditions deteriorated, with the Current Situation Index dropping 3.4 points to 136.5. Meanwhile, their near-term outlook for income, business, and employment weakened further, with the Expectations Index dropping 9.3 points to 72.9.

Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board, explained that in February, consumer confidence posted its largest monthly decline since August 2021. She noted that this marked the third consecutive month-on-month decline, bringing the Index to its lowest level seen since 2022. Guichard noted that among the five components of the Index, only consumers' view of current business conditions showed a slight improvement, while their assessment of current labor market conditions weakened. She added that consumers have become pessimistic about future business conditions and less optimistic about future incomes, and she noted that pessimism about future job prospects has worsened, reaching a ten-month high. (Newsmaker23)

Source: FXsreet