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

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WASHINGTON (AP) — The American consumer’s 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’ 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’s the 13th consecutive month that reading has come in under 80.

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

Respondents’ 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’s labor market has been stuck in a “low hire, low fire” state, economists say, as businesses stand pat due to uncertainty over Trump’s tariffs and the lingering effects of elevated interest rates.

Earlier this month, the government reported that employers added a surprisingly strong 130,000 nonfarm jobs 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. economic growth slowed 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’ 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 mired in a yearslong slump.