Consumer Confidence Rebounds
Consumer confidence rebounded this month after falling in January, exceeding analysts' and market expectations, according to data released by The Conference Board.
The organization's widely watched index checked in at 69.6, up more than 11 points from 58.4 in January. (The baseline measure of 100 was established in 1985.)
Lynn Franco, the board's director of economic indicators, said consumer confidence rebounded after Americans shrugged off the shock effect caused by the uncertainty in Washington over the "fiscal cliff" and the end of the 2-percent payroll tax cut that was enacted in 2009. "Consumers' assessment of current business and labor market conditions is more positive," Franco said. "Looking ahead, consumers are cautiously optimistic about the outlook for business and labor market conditions. Income expectations, which had turned rather negative last month, have improved modestly."
Among the findings in the monthly survey:
- Consumers' assessment of current conditions improved in February, The Conference Board said. Those claiming business conditions are "good" rose to 18.1 percent from 16.1 percent, while those stating conditions are "bad" fell slightly to 27.8 percent from 28.4 percent.
- Consumers' appraisal of the labor market was mixed. Those saying jobs are "plentiful" increased to 10.5 percent from 8.5 percent, while those claiming jobs are "hard to get" edged up to 37 percent from 36.6 percent.
- Consumers were more optimistic about the short-term outlook this month. Those expecting business conditions to improve over the next six months increased to 18.9 percent from 15.6 percent, while those expecting conditions to worsen declined to 16.5 percent from 20.4 percent.
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