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Consumer Confidence Edges Up in February as Job Market Optimism Grows
Washington D.C. – Americans are feeling a bit more upbeat about the economy, with consumer confidence seeing a modest increase in February, according to a new survey from The Conference Board. The uptick is largely driven by a more positive outlook on the job market, though inflation concerns continue to linger.
The nonprofit research group reported on Tuesday that its consumer confidence index climbed 2.2 points, reaching 91.2 in February. This marks an improvement from January’s sharp decline, which was fueled by anxieties over household income and employment prospects. However, this latest reading still falls short of the peak observed in November 2024.
An Improving Job Market Fuels Optimism
A key factor in the improved confidence is a shift in perception regarding employment. More survey respondents now believe jobs are “plentiful” rather than “hard to get,” indicating a growing sense of optimism about the labor market.
This positive sentiment aligns with recent data from the Bureau of Labor Statistics, which showed robust hiring in January. Employers added a healthy 130,000 jobs last month, contributing to the improving outlook. Despite this, the economy only gained 181,000 jobs in 2025, a significant drop from the more than 2 million added in 2024.
Americans’ short-term expectations for their income, business conditions, and the job market also saw an increase. However, these expectations remain below 80, a level often seen as a potential precursor to a recession.
This marks the 13th consecutive month this reading has stayed under 80. Meanwhile, consumers’ assessment of their current economic situation dipped slightly by 1.8 points to 120.
Inflation Remains a Sticking Point
Despite the positive shift in overall confidence, high costs continue to be a source of worry for consumers. Dana Peterson, chief economist for The Conference Board, highlighted in a press release that open-ended responses revealed growing pessimism regarding prices, inflation, and the overall cost of goods.
Consumers’ 12-month inflation expectations remained largely unchanged and are still considered elevated. Mentions of trade and politics increased in the survey, while references to labor market conditions eased as perceptions of the job market showed modest improvement this month.
On the spending front, the February survey indicated that consumers are planning to purchase more big-ticket items in the next six months, with used cars, furniture, TVs, and smartphones topping the list. Home-buying expectations, however, saw little change, which is typical for February, a generally slow period for the housing market, which has been experiencing a prolonged slump.