US consumer confidence retreats, house price inflation cools further

Reuters ^ | February 28, 2023 | By Lucia Mutikani

[Oldeconomybuyer]

WASHINGTON, Feb 28 (Reuters) - U.S. consumer confidence unexpectedly fell in February, with the decrease concentrated among lower-middle-income households, though Americans grew more upbeat about the labor market.

The survey from the Conference Board on Tuesday also showed consumers apprehensive about buying big-ticket items like motor vehicles and household appliances over the next six months. But correlation between confidence and consumer spending has been weak. A strong labor market has kept Americans spending despite worries about the future fueled by the Federal Reserve's stiff interest rate hikes to quell inflation.

"Households are likely cautious given inflation is still elevated and borrowing costs are rising," said Rubeela Farooqi, chief U.S. economist at High Frequency Economics in White Plains, New York. "But they are continuing to spend for now, owing to strong job growth that is restoring incomes."

The Conference Board's consumer confidence index dropped to 102.9 this month from 106.0 in January. Economists polled by Reuters had forecast the index would be 108.5. The second straight monthly decline mostly reflected pessimism among consumers with annual incomes in the $35,000-$50,000 range.

There were also decreases among other income groups, with the exception of the $25,000-$34,999 income bracket. Confidence dropped among consumers in the 35-54 age group.

The broad decline in confidence is in stark contrast with the University of Michigan's consumer sentiment index, which increased to a 14-month high in February.

[Diana in Wisconsin]

“U.S. consumer confidence UNEXPECTEDLY fell in February...”

*DRINK* ;)

[MplsSteve]

But...but...but...that’s not what they said on the news last night...!