U.S. Consumer Confidence Tops Analyst Estimates

RunWithRugs · 2026-02-27T01:16:01+00:00

American consumer confidence improved in February, rising to 91.2, exceeding expectations. While some components showed strength, concerns about inflation and high prices persist, indicating mixed consumer sentiment.

RunWithRugs

2026-02-27 01:16:01

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(MENAFN) American consumer confidence rebounded in February, surpassing analyst expectations as near-term pessimism eased slightly, fresh survey data showed Tuesday.

The Conference Board’s US Consumer Confidence Index climbed 2.2 points to 91.2 last month, topping the market consensus of 87.4. January’s reading was simultaneously revised upward to 89 from its initial estimate.

“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat,” said Dana Peterson, chief economist at the Conference Board.

The headline gain, however, masked a mixed picture beneath the surface. The Present Situation Index — which gauges consumers’ views on current employment and labor market conditions — slipped 1.8 points to 120. Meanwhile, the forward-looking Expectations Index, which tracks short-term outlooks on income, jobs and broader labor conditions, advanced 4.8 points to 72.

Despite that improvement, the Expectations Index remained below the critical 80-point threshold that economists typically associate with recession risk.

Peterson noted that four of the index’s five components strengthened month-over-month, yet the overall measure still sits well beneath the four-year high of 112.8 recorded in November 2024. She added that consumers’ written responses to the survey skewed negative, with elevated prices, persistent inflation and the cost of everyday goods continuing to dominate concerns.

Mentions of trade policy and politics increased in February, while anxieties around the labor market softened modestly and references to immigration climbed. Average and median 12-month inflation expectations held largely steady but remained at elevated levels, with consumers also anticipating that interest rates will stay high through the coming year.

On equities, Peterson said most respondents still expect stock prices to be higher in 12 months — though that share narrowed slightly compared to January.

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