US consumer confidence drops for 2nd straight month in February

By Tuba Sahin

ANKARA (AA) - US consumer confidence dropped for the second month in a row in February, according to data released by the Conference Board on Tuesday.

The Consumer Confidence Index that predicts consumer spending and economic activity, fell slightly by 0.6 points from January to reach 110.5 this month.

The January figure was revised down to 111.1 from 113.8.

Lynn Franco, senior director of economic indicators at the Conference Board, pointed out that expectations over short-term growth prospects weakened further while the proportion of consumers to purchase homes, automobiles, major appliances, and vacations over the next six months slipped.

"Concerns about inflation rose again in February, after posting back-to-back declines. Despite this reversal, consumers remain relatively confident about short-term growth prospects," Franco said.

"Nevertheless, confidence and consumer spending will continue to face headwinds from rising prices in the coming months," he added.

The Present Situation Index, based on consumers’ assessment of current business and labor market conditions, rose to 145.1 in February, up from 144.5 a month ago.

The Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, dropped to 87.5 from 88.8.