U.S. consumer confidence drops to five-month low in February
BNN Bloomberg
U.S. consumer confidence fell in February to the lowest since September as expectations for growth and financial prospects softened amid decades-high inflation.
U.S. consumer confidence fell in February to the lowest since September as expectations for growth and financial prospects softened amid decades-high inflation.
The Conference Board’s index decreased to 110.5 from a downwardly revised 111.1 reading in January, according to the group’s report Tuesday. Economists in a Bloomberg survey had called for a reading of 110.
Americans are experiencing the highest inflation since the early 1980s, which is well outpacing wage growth. The Russia-Ukraine conflict may further take a toll on confidence, especially if gasoline prices continue to rise, and surging mortgage rates are making housing that much less affordable.
The Conference Board’s expectations index dropped to 87.5, also a five-month low, while the gauge of current conditions improved to 145.1.
Concerns about the prospects for inflation worsened in February after easing in the prior two months, the group said. That contributed to declining confidence among Americans age 55 and over, some of whom are on fixed incomes, as well as those earning less than US$35,000.
