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Consumer confidence leapt in February, posting a 130.8 reading in the latest Consumer Confidence Index® from The Conference Board. The Expectations reading of the Index rose to 109.7, while the Present Situation reading rose to 162.4. January’s reading was 124.3.

“Consumer confidence improved to its highest level since 2000 (Nov. 2000, 132.6) after a modest increase in January,” said Lynn Franco, director of Economic Indicators at The Conference Board, in a statement. “Consumers’ assessment of current conditions was more favorable this month, with the labor force the main driver. Despite the recent stock market volatility, consumers expressed greater optimism about short-term prospects for business and labor market conditions, as well as their financial prospects. Overall, consumers remain quite confident that the economy will continue expanding at a strong pace in the months ahead.”

The percentage of consumers who believe business conditions are “good,” as defined by the Index, increased from 35.0 percent in January to 35.8 percent in February; the percentage of those who believe business conditions are “bad” decreased from 13.0 percent in January to 10.8 percent in February. The percentage of those who expect business conditions to improve increased from 21.5 percent in January to 25.8 percent in February; the percentage of those who expect business conditions to worsen decreased from 9.8 percent in January to 9.4 percent in February.

The percentage of consumers who believe jobs are “plentiful” increased from 37.2 percent in January to 39.4 percent in February, according to the Index; the percentage of those who believe jobs are “hard to get” decreased from 16.3 percent in January to 14.7 percent in February. The percentage of those who expect more jobs in the coming months increased from 18.7 percent in January to 21.6 percent in February; the percentage of those who expect less jobs in the coming months decreased from 12.5 percent in January to 11.9 percent in February.

The percentage of consumers who expect higher incomes increased from 20.6 percent in January to 23.8 percent in February; the percentage of those who expect a decrease also increased, from 7.9 percent in January to 8.6 percent in February.

Source: The Conference Board

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