Consumer confidence dropped sharply in February, with the index falling from 56.5 in January to 46.0 currently, The Conference Board said today. The index which had been improving over the past several months, recorded its lowest drop since last April, reflecting weak business conditions and a poor job outlook.
The Conference Board also reported that the Present Situation Index decreased to 19.4 from 25.2 and the Expectations Index was down from 77.3 in January to 63.8 in February.
“Consumer Confidence, which had been improving over the past few months, declined sharply in February. Concerns about current business conditions and the job market pushed the Present Situation Index down to its lowest level in 27 years (Feb. 1983, 17.5), said Lynn Franco, Director of The Conference Board Consumer Research Center, in a statement.
Franco noted that consumers’ outlook in the near term also declined with fewer consumers anticipating any improvements in the job market and business climate in the next six months. “Consumers also remain extremely pessimistic about their income prospects. This combination of earnings and job anxieties is likely to continue to curb spending,” she said.
