Consumer Confidence Sees Modest Rise in February, Driven by Labor Market Optimism

Consumer confidence edged higher in February, fueled by a more optimistic view of the labor market and other economic indicators, according to a new survey from The Conference Board. The index rose to 91.2 in February, an increase of 2.2 points from January, surpassing economists' expectations of 86.8.

While this represents an improvement over January's sharp decline, which was marked by concerns about household income and job prospects, the February reading remains below the peak achieved in November 2024. The Conference Board's latest report, released on February 24, 2026, indicates a nuanced economic sentiment among consumers.

Labor Market Brightens

A key driver of the uptick in confidence appears to be the labor market. A larger proportion of survey respondents reported that jobs are 'plentiful' compared to 'hard to get,' signaling a more favorable consumer outlook on employment. This improved sentiment follows a robust January jobs report from the Bureau of Labor Statistics, which showed employers adding 130,000 jobs. However, the broader trend shows a slowdown, with the economy adding only 181,000 jobs in 2025, a significant decrease from the over 2 million jobs added in 2024.

Consumers' short-term expectations regarding their income, overall business conditions, and the job market also saw an increase. Despite this positive shift, these expectations remain below 80, a threshold that historically signals a potential recession. This reading has now been consistently under 80 for 13 consecutive months. Conversely, the measure of consumers' current economic situation saw a slight dip of 1.8 points, settling at 120.

Inflation Concerns Linger

Despite the improved outlook on jobs, inflation and the rising cost of goods continue to be a source of concern for consumers. Dana Peterson, chief economist for The Conference Board, highlighted that write-in comments within the survey reflected growing pessimism regarding prices and inflation. Consumers' 12-month inflation expectations remained elevated, showing little change from previous periods.

The survey also noted an increase in mentions of trade and politics, while references to labor market conditions eased slightly as perceptions of the job market improved. This suggests that while the job market is viewed more favorably, broader economic and political factors, alongside price increases, continue to weigh on consumer sentiment.

Spending Plans on the Rise

Looking ahead, consumers are showing an increased inclination to make significant purchases. The survey indicates a rise in plans to buy big-ticket items over the next six months. Specifically, intentions to purchase used cars, furniture, televisions, and smartphones were notable. Home-buying expectations, however, remained largely unchanged, reflecting the ongoing slump in the housing market, which has been a consistent challenge for several years.