U.S. Consumer Confidence
Good news? Bad news? Mostly meh.
U.S. consumer confidence moved up modestly in February to 91.2 from 89.0 in January. The index increased, beating expectations of a lower figure. But as the chart below shows, it still remains far too low. Good news came from the Expectations Index, which rose 4.8 points to 72.0, helping
The Conference Board summarized the full report as “cautious stabilization”.
The overall view is mixed due to concerns about the labor market, inflation sentiment, and the divide in confidence across different age groups. Consumer confidence among those under 55 has improved, while that of those over 55 remains less confident.
The Conference Board noted that consumer spending trends continue to “skew toward cheap thrills and necessary services and away from highly discretionary/expensive activities.” However, it was also mentioned that future spending expectations increased slightly for products such as used vehicles, furniture, TVs, and smartphone upgrades.
U.S. Economy – Flash PMI
The Flash PMI estimates manufacturing activity based on 85% to 90% of the total Purchasing Managers Index (PMI) survey. It serves as an early indicator of where the final PMI data will settle and monitors output, new orders, and prices.
Overall, the data show a resilient global economy that appears ready to plod along with moderate growth at the start of the year.
The U.S. Flash PMI indicated that the services sector slightly weakened to 52.3, down from 52.7 last month. Manufacturing also experienced a slight decline, falling to 51.2 from 52.4. Both remained in expansion territory (above 50.0), but it may be too early to tell which way the economy is heading.
