The preliminary Consumer Confidence Index reading shows that consumer confidence fell sharply to 98.3 in February, lower than the expected 102 and the prior reading of 104.1. The Conference Board senior US Economist Yelena Shulyatyeva joins Catalysts co-hosts Madison Mills and Seana Smith to discuss the factors driving this decline.
Shulyatyeva acknowledges this was a "sharp drop," with consumer confidence now at the lowest level of the range at which it has hovered for the last few years. However, she notes this number is still within a range that signals "healthy consumer spending."
Since this survey reflects labor market conditions, the sharp decline reveals that "consumers are not seeing great prospects in the labor market, and that is something to watch in the months ahead."
Shulyatyeva adds, "If that continues to deteriorate, that's a big deal."
She also highlights that consumers remain concerned about inflation, especially amid uncertainty around tariffs. With inflation remaining sticky and tariffs potentially proving inflationary, she notes this combination presents "a big concern for the consumer."
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This post was written by Angel Smith