Economy
Consumer Confidence Falls Again in February
February 28, 2023
US consumer confidence slipped for the second straight month in February, according to the The Conference Board.
The Consumer Confidence Index fell to 102.9 in February vs. a downwardly revised figure of 106.0 in January.
“Consumer confidence declined again in February,” Ataman Ozyildirim, senior director of economics at The Conference Board, said in a statement. “The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more.”
He said that while consumers’ view of current business conditions worsened in February, the Present Situation Index inched up slightly “based on a more favorable view of the availability of jobs.”
The Present Situation Index rose to 152.8 this month from 151.1 in January.
Looking forward, the Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, declined to 69.7 in February from a downwardly revised 76.0 in January.
The Conference Board said the Expectations Index has now dipped “well below” 80—the level that often signals a recession within the next year. The Board noted it has been below this level for 11 of the last 12 months.
This has trickled down to spending habits. Ozyildirim said consumers may be showing early signs of pulling back spending in the face of high prices and rising interest rates.
“Fewer consumers are planning to purchase homes or autos, and they also appear to be scaling back plans to buy major appliances,” he added.
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Economy
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.
Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)
Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.