US consumer confidence rises on stronger prospects for jobs
Americans have been generally cautious about their job prospects and are still dealing with an inflation hangover from the pandemic
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[WASHINGTON] US consumer confidence ticked up in February on more upbeat prospects for the economy, job market and incomes.
The Conference Board’s gauge increased to 91.2, from an upwardly revised 89 last month, data out Tuesday (Feb 24) showed. The latest figure was above all but one estimate in a Bloomberg survey of economists.
A measure of expectations for the next six months climbed by the most since July to 72, while a gauge of present conditions continued to fall.
The rise in confidence comes as recent data has indicated the labour market is showing some signs of stabilisation and inflation has been relatively tame. However, Americans have been generally cautious about their job prospects and are still dealing with an inflation hangover from the pandemic, which stands to be a major factor in this year’s midterm elections.
The survey cutoff date was Feb 17, before the Supreme Court struck down most of US President Donald Trump’s sweeping global tariffs. While Trump is still trying to keep trade deals intact, the ruling may help alleviate some of consumers’ concerns about the high cost of living going forward.
“Comments about prices, inflation, and the cost of goods remained at the top of consumers’ minds,” Dana Peterson, chief economist at the Conference Board, said. “Mentions of trade and politics also increased in February.”
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The share of consumers saying jobs were plentiful rose to a three-month high of 28 per cent. At the same time, the share of respondents that said jobs were currently hard to get also climbed.
The difference between these two, a metric closely followed by economists to gauge the job market, widened to 7.4 percentage points.
While buying plans for big-ticket items like new cars, refrigerators and televisions improved, planned spending on services such as vacations eased.
The Conference Board’s index generally focuses on labour market conditions, whereas a separate metric of consumer sentiment from the University of Michigan emphasises views about personal finances and the cost of living.
Even so, they have largely tracked each other in recent years. Michigan’s gauge edged up in February due to optimism among wealthier Americans. BLOOMBERG
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