US consumer confidence sees steepest decline in over three years
By Benjamin Chiou
Date: Tuesday 25 Feb 2025
(Sharecast News) - Consumer confidence in the United States declined to below its historic average in February as pessimism about the future returned, according to data out on Tuesday from The Conference Board.
The business membership and research organisation's closely watched consumer confidence index fell by 7.0 points this month to 98.3, with both views on both the current and future environments worsening.
This was the largest monthly decline since August 2021, and below the historic average level of 100.
"This is the third consecutive month on month decline, bringing the Index to the bottom of the range that has prevailed since 2022," said Stephanie Guichard, senior economist of global indicators at The Conference Board.
The present situations index, which tracks consumer perceptions of of current business and labour market conditions, declined by 3.4 points to 136.5.
Meanwhile the expectations index, which tracks consumers' short-term outlook for income, business and jobs, dropped 9.3 points to 72.9. This was the first time since June 2024 that the expectations measure fell below the key 80-point level "that usually signals a recession ahead", the survey said.
Notably, consumer predictions about inflation 12 months ahead jumped to 6% from 5.2% the month before. "This increase likely reflected a mix of factors, including sticky inflation but also the recent jump in prices of key household staples like eggs and the expected impact of tariffs," Guichard added.
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN