Consumer confidence edged higher in February as Americans expressed a more optimistic view of the labor market and other facets of the economy, according to a new survey released this week. The Conference Board, a nonprofit research group, reported Tuesday that its consumer confidence index increased by 2.2 points in February, rising to 91.2, marking a notable improvement from the previous month.
The February uptick follows a sharp decline in January, when consumer sentiment fell amid concerns over household income and job prospects. However, the current reading remains below the peak reached in November 2024, according to the Conference Board’s latest data.
Labor Market Outlook Drives Consumer Confidence Gains
A higher share of survey respondents now say jobs are “plentiful” versus “hard to get,” signaling that consumers may be adopting a more favorable outlook of employment opportunities. This shift in perception aligns with recent labor market data showing continued hiring activity across the economy.
The improved consumer confidence reading comes after the Bureau of Labor Statistics reported robust hiring in January. Employers added 130,000 jobs last month, according to the latest jobs report. Meanwhile, the economy gained just 181,000 jobs in 2025, a fraction of the more than 2 million added in 2024, suggesting a significant slowdown in overall employment growth.
Americans’ short-term expectations for their income, business conditions and the job market also rose in February. Nevertheless, these expectations remain well below 80, the marker that can signal a recession ahead, according to economists. This marks the 13th consecutive month that the reading has come in under that threshold.
In contrast, the measure of consumers’ assessments of their current economic situation fell by 1.8 points to 120. This divergence suggests that while Americans are growing more hopeful about future conditions, their evaluation of present circumstances has weakened slightly.
Inflation Worries Persist Despite Improved Sentiment
The consumer confidence data reveals that Americans remain wary about high costs despite the overall improvement in sentiment. Dana Peterson, chief economist for the Conference Board, noted in a press release that write-in responses reflected growing pessimism towards prices, inflation and the cost of goods.
Consumers’ 12-month inflation expectations were little changed but remain elevated compared to historical norms. Additionally, mentions of trade and politics increased in survey responses, while references to labor market conditions eased as perceptions of the job market improved modestly this month.
Big-Ticket Purchases on the Rise
According to the Conference Board’s February survey, consumers’ plans to buy big-ticket items over the next six months rose. Plans to purchase used cars, furniture, televisions and smartphones led the way, indicating that some Americans may feel comfortable making larger expenditures despite ongoing inflation concerns.
However, home-buying expectations were little changed in February. The housing market generally experiences slower activity during this time of year and has been mired in a years-long slump due to elevated mortgage rates and high home prices that have put homeownership out of reach for many potential buyers.
The Conference Board will release its next consumer confidence index in late March, providing further insight into whether the February improvement represents a sustained trend or a temporary reprieve. Economists will be watching closely to see if confidence can climb back above the November 2024 peak and whether expectations for future conditions can break above the 80 threshold that has persisted for over a year.