February Consumer Confidence Data: Watchful But Hopeful

The latest consumer confidence data from The Conference Board indicates that consumers remain cautiously optimistic about the economy. February consumer confidence data showed gains across most inputs; however, the survey results were gathered prior to the Texas power crisis resulting from the recent winter storm and could paint a partial picture of current sentiment. Nevertheless, there are some encouraging trends that should reflect prevailing business conditions and potential developments for the upcoming months.

“After three months of consecutive declines in the Present Situation Index, consumers’ assessment of current conditions improved in February,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “This course reversal suggests economic growth has not slowed further. While the Expectations Index fell marginally in February, consumers remain cautiously optimistic, on the whole, about the outlook for the coming months. Notably, vacation intentions—particularly, plans to travel outside the U.S. and via air—saw an uptick this month, and are poised to improve further as vaccination efforts expand.”