Consumer confidence slips in February as anxiety over potential recession surprisingly reappears
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American consumers are feeling less confident this month as concerns over a possible recession grew, despite most indicators pointing to a healthy U.S. economy. The Conference Board reported that its consumer confidence index fell to 106.7 from a revised 110.9 in January, after three straight months of improvement. The index measuring Americans' short-term expectations for income, business, and the job market fell to 79.8 from 81.5 in January, signaling a possible upcoming recession. Consumers' view of current conditions also retreated, falling to 147.2 from 154.9. The decline in consumer confidence is surprising given the resilience of the economy in the face of higher interest rates and inflation. Consumer spending accounts for about 70% of U.S. economic activity. Despite some recent high-profile layoffs, the labor market continues to churn out jobs, with U.S. employers adding 353,000 jobs in January and the unemployment rate staying at 3.7%. The Federal Reserve is expected to start cutting rates later this year to further boost the strong economy. Overall, consumers are set to benefit from declining interest rates as the Fed starts to lower the target range this year, which should be supportive of sentiment over time.

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https://abcnews.go.com/Business/wireStory/consumer-confidence-slips-february-anxiety-potential-recession-perked-107592019