Consumer Confidence Slips Unexpectedly

U.S. consumer confidence declined in February for the first time in three months, the Conference Board said Tuesday.

Consumer confidence is a good prognosticator of consumer spending. When people feel better about the economy, they are more likely to spend money and purchase goods, which will boost the demand for trucking services.

The index stands at 94.1, after rising to a revised 97.8 in January. Despite the decline, the reading is above November’s 7½ year low and still points to healthy consumer spending in the months ahead, Lynn Franco, director of the board's Consumer Research Center, said.

The reading was well below analysts’ prediction of 97, Bloomberg reported.

The gauge of consumer expectations for the next six months fell to 93.6 from 97.6 in January. Also, the index measuring current conditions dropped to 94.8 in February, the lowest since October 1994, from 98.1.

The report also found that consumers are less optimistic about the labor markets.

Still, analysts told Bloomberg that although it appears consumers are being more cautious, there does not appear to be a panic developing.

Founded in 1916, the New York-based Conference Board is a private business membership and research network that also produces the U.S. Index of Leading Economic Indicators. Its membership includes more than 3,000 companies and other organizations in 67 countries.

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