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Consumer Confidence Jumps 9 Points
February 28,
2012 by in UnCategorized 
By Home Furnishings Business in on February 29, 2012
Consumer confidence started its climb out of the depths reached during the last recession as employers step up hiring and stocks rally, signaling Americans may be poised to increase spending.
The Conference Board released its Consumer Confidence Index Tuesday for this month showing a significant jump from January. The Index now stands at 70.8, up from 61.5 in January. The Present Situation Index increased to 45.0 from 38.8, and the Expectations Index rose to 88.0 from 76.7 in January.
Consumer confidence, which had declined last month, posted a sizeable improvement in February, said Lynn Franco, director of The Conference Board Consumer Research Center. The Index is now close to levels last seen a year ago (Feb. 2011, 72.0). Consumers are considerably less pessimistic about current business and labor market conditions than they were in January. And, despite further increases in gas prices, they are more optimistic about the short-term outlook for the economy, job prospects, and their financial situation.
Consumers assessment of current conditions was more favorable in February. Those claiming business conditions are good increased slightly to 13.3 percent from 13.2 percent, while those claiming business conditions are bad decreased to 31.2 percent from 38.3 percent.
Consumers appraisal of the labor market was also less pessimistic. Those stating jobs are plentiful increased to 6.6 percent from 6.2 percent, while those saying jobs are hard to get decreased to 38.7 percent from 43.3 percent.
Consumers were also more optimistic about the short-term outlook than they were last month. The proportion of consumers expecting business conditions to improve over the next six months increased to 18.7 percent from 16.7 percent, while those anticipating business conditions will worsen decreased to 11.8 percent from 14.6 percent.