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US consumer confidence improves modestly in February after cratering the first month of 2026

WASHINGTON (AP) 鈥 The American consumer鈥檚 confidence in the U.S. economy improved slightly in February after cratering a month earlier.

The Conference Board said Tuesday that its consumer confidence index rose to 91.2 in February from an upwardly revised 89 last month.

A measure of Americans鈥 short-term expectations for their income, business conditions and the job market rose four points to 72, remaining well below 80, the marker that can signal a recession ahead. It鈥檚 the 13th consecutive month that reading has come in under 80.

The measure of consumers鈥 assessments of their current economic situation fell by 1.8 points to 120.

Respondents鈥 references to prices and inflation were little changed but remain elevated. Mentions of trade and politics increased, while references to labor market conditions eased as perceptions of the job market improved modestly this month.

The country鈥檚 labor market has been stuck in a 鈥渓ow hire, low fire鈥 state, economists say, as businesses stand pat due to uncertainty over Trump鈥檚 tariffs and the lingering effects of elevated interest rates.

Earlier this month, the government reported that employers added a surprisingly strong in January. Still, the economy gained just 584,000 jobs in 2025, about one-fourth of the more than 2 million added in 2024.

The softening job market comes even as the U.S. economy keeps growing, often beyond projections.

U.S. in the final three months of last year, dragged down by the six-week shutdown of the federal government and a pullback in consumer spending. The weaker fourth-quarter growth of 1.4% followed stronger-than-expected figures of 4.4% in the July-September quarter and 3.8% in the quarter before that.

According to the Conference Board’s February survey, consumers鈥 plans to buy big-ticket items over the next six months rose, with plans to buy used cars, furniture, TVs, and smartphones leading the way.

Home-buying expectations were little changed in February, generally a slow time for the housing market, which has been .

Copyright © 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

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