Consumer Confidence Shakes Off Fiscal Cliff Debacle
After reaching its lowest point in more than a year last month, consumer confidence rebounded in February. The index of consumer attitudes jumped to 69.6, compared to a downwardly revised 58.4 in January, according to The Conference Board, an industry group. The results exceeded expectations for a 61.0 reading and every estimate in a Bloomberg survey of economists.
Lynn Franco, Director of Economic Indicators at The Conference Board, explains, “Consumer Confidence rebounded in February as the shock effect caused by the fiscal cliff uncertainty and payroll tax cuts appears to have abated. Consumers’ assessment of current business and labor market conditions is more positive than last month. Looking ahead, consumers are cautiously optimistic about the outlook for business and labor market conditions. Income expectations, which had turned rather negative last month, have improved modestly.”