US CB Consumer Confidence Index weakens to 98.3 in February
- US CB Consumer Confidence Index declined in February.
- The US Dollar Index trades on the degfensive near recent lows.
Consumer confidence in the US took a hit in February, with the Consumer Confidence Index slipping to 98.3 (from 105.3) according to the Conference Board.
Furthermore, the index eased to the lowest level since June 2024.
Consumers' views of current business and job market conditions slipped, with the Present Situation Index dropping by 3.4 points to 136.5. Meanwhile, their short-term outlook for income, business, and employment weakened even more, as the Expectations Index fell by 9.3 points to 72.9.
Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board, explained that in February, consumer confidence registered the largest monthly decline since August 2021. She noted that it marked the third consecutive month-on-month drop, bringing the Index to the lowest level seen since 2022. Guichard pointed out that among the five components of the Index, only consumers’ view of present business conditions showed a slight improvement, while their assessment of current labor market conditions had weakened. She added that consumers had grown pessimistic about future business conditions and less optimistic about future income, and she remarked that pessimism regarding future employment prospects had deteriorated, reaching a ten-month high.
Market reaction
The Greenback faces renewed bearish pressure and prompts the US Dollar Index (DXY) to reverse part of the recent advance and refocus on the lower end of the range and close to recent multi-week lows arund 106.30.
Author
FXStreet Team
FXStreet
