Snap back? US consumer confidence rises as COVID cases drop

Americans feel a bit more upbeat about the jobs market and the government passing stimulus, but serious concerns remain.

United States consumer confidence increased in February, with households slightly more upbeat about the labour market amid declining new COVID-19 infections and expectations for additional money from the government to help the economy’s recovery from the coronavirus pandemic. The survey from the Conference Board on Tuesday also showed consumers warming up to overseas vacations, though fewer intended to purchase homes, automobiles and other big-ticket items over the next six months. Consumers anticipated higher inflation as well. This fits in with economists’ predictions that demand will swing back to services from goods by summer as more Americans get vaccinated, and boost price pressures. There are concerns in some quarters that very accommodative fiscal and monetary policy will ignite inflation this year. Federal Reserve Chair Jerome Powell has played down these fears, citing three decades of lower and stable inflation.