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The numbers: Consumer confidence retreated in February from a six-month high, reflecting heightened worries about the jobs market and the U.S. presidential election.
The closely followed index fell to 106.7 from a revised 110.9 in January, the Conference Board said Tuesday. It was the first decline in three months.
Economists polled by the Wall Street Journal had forecast the index to register 115.1.
Consumer confidence tends to signal whether the economy is getting better or worse. Confidence has improved considerably since late last year thanks to slowing inflation, but it’s still well below the pre-pandemic high.
Key details: A measure that looks at how consumers feel about the economy right now backtracked to 147.2 from 154.9 in the prior month.
A confidence gauge that looks ahead six months dipped to 79.8 from 81.5 in the prior month.
Big picture: The economy is in pretty good shape. Inflation has waned, unemployment is low, the stock market is booming and the Federal Reserve is likely to cut interest rates later in the year.
The likely rematch between President Biden and Donald Trump looms as potential wild card. Both men fare poorly in public polling.
Looking ahead: “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the U.S. economy,” said Dana Peterson, chief economist at the board.
“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,” she said. “But they are more concerned about the labor market situation and the U.S. political environment.”
Market reaction: The Dow Jones Industrial Average
DJIA,
and the S&P 500
SPX,
fell in Tuesday trades.
