Last Update: 25-Feb-14 10:13 ET
- The Conference Board’s Consumer Confidence Index slipped to 78.1 in February from a downwardly revised 79.4 (from 80.7) in January. The Briefing.com consensus pegged the index at 80.8.
- Typically, confidence mirrors trends in stock prices, gasoline costs, employment levels, and media reports. There has been increased volatility among these indicators, but overall trends have been moving sideways.
- The slight drop in confidence, which is still above the December level (77.5), is likely nothing more than consumers reacting to the recent volatility.
- The Present Conditions Index increased to 81.7 in February from 77.3 in January. The Expectations Index fell to 75.7 from 80.8.
- Consumption growth is not tied to confidence. As long as income trends higher, then consumption will follow regardless of how confidence performs.
- Income gains are the main catalyst for spending, yet rising levels of confidence over time tend to help on matters of discretionary spending.
|Employment ('plentiful' less 'hard to get')
|1 yr inflation expectations