The Conference Board Consumer Confidence Index fell in February, to 101.7 (on a base of 100 in 1985), down from 106.8 in January, the organization said on Tuesday.
The Present Situation Index rose to 129.3, from 128.8. The Expectations Index, however, fell to 83.3, from January’s 92.1.
“The Present Situation Index continues to hold steady at a four-and-a-half year high [since August 2001’s 144.5], suggesting that, at least for now, the start of 2006 will be better than the end of 2005,” Lynn Franco, director of Conference Board Consumer Research Center, said in a press release. “However, consumers are growing increasingly concerned about the short-term health of the economy and, in turn, about job prospects. The Expectations Index is now at its lowest level in three years [since March 2003’s 61.4], excluding the two months following Hurricane Katrina. If expectations continue to lose ground, the outlook for the remainder of 2006 could deteriorate.”
The consumer confidence survey is based on a representative sample of 5,000 U.S. households. It is conducted monthly for the Conference Board by TNS, a custom research company.
