Consumer confidence tumbles in February
By Chavon Sutton, staff reporter
February 23, 2010: 10:39 AM ET
NEW YORK (CNNMoney.com) -- A closely-watched measure of consumer confidence fell sharply in February after three straight months of improvement, a research group said Tuesday.
The Conference Board, a New York-based research group, said its Consumer Confidence Index fell to 46.0 in February from an 56.5 in January.
According to a Briefing.com consensus survey, economists expected the index to fall slightly to 55.0 from 55.9. The index, which is based on a survey of 5,000 U.S. households, is closely monitored because consumer spending drives two-thirds of the nation's economic activity.
February's present situation index, which indicates how consumers feel about current economic conditions, hit a 27 year low of 19.4, according to the Conference Board. That means that consumers feel things are worse now than they were during the throes of the financial crisis in the fall of 2008.
The expectation index, a measure of consumer outlook over the next few months, also fell to 63.8 from an upwardly revised 77.3 in January. Only 16.7% of consumers expect to see improvement in business conciliations over the next 6 months, down from 20.7%.
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