slightly to 90.8 this month from 91.2 in January.
That’s somewhat surprising to economists as
many experts have predicted that widespread
vaccinations and warmer weather could make
for a summer of relative normalcy.
“One would imagine that the prospect of
vaccines being rolled out to all Americans
would boost confidence for the future,” said
Jennifer Lee, an economist with BMO Capital
Markets. “Not the case this month.” Lee noted
that she thought consumer confidence would
continue to improve in the coming months as
more people are vaccinated and businesses
fully reopen.
The percentage of consumers who said
business conditions are “good” increased from
15.8% to 16.5%, while the proportion claiming
business conditions are “bad” fell to 39.9% from
42.4%. Consumers’ views of the labor market
also improved.
The percentage of consumers expecting
business conditions to improve over the next six
months fell to 31% from 34.1%. Those expecting
conditions to worsen, however, also declined.
Consumers’ assessment of the job market was
also mixed. While fewer of those surveyed said
they expected more job opportunities in the
coming months, those who thought there
would be fewer prospects also declined.
Slightly fewer consumers expect their incomes
to increase in the next six months, but fewer see
their incomes declining.
The consumer confidence index, which is closely
watched by businesses and economists because
consumer spending makes up about 70% of U.S.
economic activity, had been over 100 for nearly