February Consumer Confidence Falls Short: What It Means for the Slowing Economy

In February 2025, shoppers in New York City faced empty egg shelves at their local supermarkets. This snapshot of scarcity reflects broader economic concerns.

The Conference Board recently reported that consumers are feeling more negative about the economy. Their Consumer Confidence Index fell to 98.3, marking a nearly 7% drop. This is the lowest score since June 2024 and the biggest monthly decline since August 2021.

Stephanie Guichard, a senior economist at the Conference Board, noted, “Consumers are worried about jobs and future income.” Attitudes towards the labor market have soured, with fears about employment reaching a ten-month high.

Even though some economic signs show growth, this drop in confidence aligns with other surveys. For example, the University of Michigan reported almost a 10% decline in consumer confidence in February. It also revealed that inflation worries have spiked, with the five-year outlook being the highest since 1995.

The decline in confidence wasn’t limited to a specific group; it was felt across all age and income levels. Notably, the Expectations Index dropped by 9.3 points to 72.9, dipping below recession levels for the first time since June 2024. On a brighter note, perceptions of current economic conditions improved slightly, with 19.6% of respondents rating conditions as “good,” up from January.

However, the job market sentiment has dimmed. Only 33.4% of people felt that jobs are “plentiful,” a small decrease from January’s 33.9%, while those who think jobs are “hard to get” increased from 14.5% to 16.3%.

Following the news, stock prices dipped, and Treasury yields dropped further.