WASHINGTON, February 25 — US Consumer Confidence showed a modest improvement in February, marking a rebound after a sharp dip earlier this year, according to The Conference Board’s latest monthly survey released Tuesday. The benchmark confidence index climbed to 91.2, up from an upwardly revised 89.0 in January — signaling a slight pickup in optimism about the economy and job prospects despite lingering concerns over inflation and prices.
The improvement comes as households displayed greater confidence in their short-term outlook for income, business conditions, and labor market prospects, even as views on the economy’s current health softened slightly.
Conference Board Index Shows Uptick in Expectations
The Conference Board Consumer Confidence Index, a widely followed barometer of U.S. household sentiment, improved by 2.2 points to 91.2 in February. The Expectations Index — which reflects short-term consumer expectations for income, business, and labor market conditions — rose to 72.0, up 4.8 points from January.
Despite the overall improvement, the Present Situation Index — based on consumers’ assessment of current business and labor market conditions — eased slightly to 120.0, suggesting that households remained cautious about the immediate economic environment.
Economists often view the Expectations Index as a leading indicator for consumer spending, which accounts for roughly two-thirds of total U.S. economic activity.
Labor Market and Spending Outlook
The latest survey showed mixed signals on labor market sentiment. While more consumers expressed confidence in future job opportunities and wage prospects than in January, concerns over hiring conditions remained pronounced. This reflected ongoing uncertainty in sectors tied closely to broader economic growth and policy settings.
Short-term spending intentions also varied. While fewer households planned major purchases such as vehicles, there was a slight uptick in intentions to buy household goods and appliances, a sign that some consumers may feel more confident about discretionary spending.
Inflation and Price Concerns Remain
Consumer worries about inflation and pricing pressures remained elevated despite the uptick in confidence. Many households still cited concerns about the overall cost of living, driven by persistent food and housing costs, even as inflation measures have cooled from earlier peaks.
Federal Reserve policymakers continue to weigh inflation evolution against economic growth prospects when setting interest rate policy. Sustained consumer price pressures could complicate expectations for future monetary policy moves.
Broader Economic Context
The improvement in confidence follows a period of weakening sentiment earlier in 2026. January’s downward revision reflected growing economic uncertainty, particularly after slower job creation and mixed earnings reports from key sectors.
The Michigan Consumer Sentiment Index also showed slight strength in February, rising to 56.6 from 56.4, according to the University of Michigan survey. Although measured on a different scale, this data point aligns with the Conference Board’s indication of a modest rise in consumer optimism.
Despite some positive signals, confidence levels remain below historical norms, and households are adjusting to a higher cost environment shaped by recent inflation and varying labor market conditions.
Market and Policy Reaction
Financial markets reacted cautiously to the news. Major U.S. equity indices showed modest gains on the day, as investors parsed the data against broader economic indicators. Treasury yields remained relatively stable, suggesting that fixed income markets are balancing growth prospects with inflation concerns.
Policy makers at the Federal Reserve and Treasury Department closely monitor consumer sentiment metrics as they can influence spending trends and broader economic momentum.
Economists suggest that continued improvements in confidence, especially if accompanied by stronger labor market data and wage growth, could support sustained economic expansion throughout 2026.
Outlook
Consumers’ attitudes provide essential insights into future economic activity, particularly as spending behavior adjusts to price movements and employment conditions. Upcoming retail sales figures, jobless claims data, and inflation reports will further illuminate whether confidence gains translate into tangible spending and investment decisions.
For now, the modest rise in US Consumer Confidence reflects a cautiously optimistic household outlook, tempered by ongoing concerns about inflation, labor market conditions, and economic policy uncertainty.