Preliminary consumer confidence index readings showed that consumer confidence dropped sharply to 98.3 in February, below expectations of 102 and previous 104.1 readings. Yelena Shulyatyeva, senior economist on the conference committee, co-chaired Madison Mills and Seana Smith, with Catalysts, discusses the factors driving the decline.
Shulyatyeva acknowledged that this was a “steep decline” and now consumer confidence has hovered at the lowest level of range over the past few years. However, she noted that the figure is still within the scope of “healthy consumer spending.”
As this survey reflects the situation in the labor market, the sharp drop suggests: “Consumers don’t see huge prospects in the labor market, which is something to watch for in the coming months.”
“If it continues to deteriorate, it will be huge,” Shulyatyeva added.
She also stressed that consumers are still paying attention to inflation, especially among the uncertainty surrounding tariffs. Since inflation remains and tariffs may prove inflation, she notes that the combination is “a big concern for consumers.”
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This article is from Angel Smith
