US consumer confidence ebbs in Feb; inflation expectations fall

An independent barber waits for customers on his van in a local street, in New York, U.S., Dec  25, 2023. REUTERS/Eduardo Munoz/File Photo

WASHINGTON  – U.S. consumer confidence retreated in February after three straight monthly increases as households worried about the labor market and the domestic political environment.

The Conference Board said on Tuesday that its consumer confidence index slipped to 106.7 this month from a downwardly revised 110.9 in January. Economists polled by Reuters had forecast the index little changed at 115.0 from the previously reported 114.8.

“February’s write-in responses revealed that while overall inflation remained the main preoccupation of consumers, they are now a bit less concerned about food and gas prices, which have eased in recent months,” said Dana Peterson, chief economist at The Conference Board in Washington.

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“But they are more concerned about the labor market situation and the U.S. political environment.”

Consumers’ inflation expectations fell to 5.2 percent, the lowest level since March 2020, from 5.3 percent in January.