Consumer Confidence Index Declines in February 2025

Consumer Confidence Index Declines in February 2025

The Unated States Conference Board released its latest Consumer Confidence Index (CCI) on February 25, 2025, revealing decreased consumer confidence. The index fell to 98.3, down from the previous forecast of 104.1. This decline suggests consumers may feel less optimistic about the economy's stability.

The CCI is a leading indicator of economic health, as it measures consumers' feelings about the economy. It is based on a monthly survey of over 5,000 households, gauging their financial situation, purchasing power, and confidence in the economy. The survey consists of five questions, two of which focus on current economic conditions, while three address future expectations.   

Since expectations make up 60% of the survey, the CCI is considered a leading market indicator. Changes in the index can signal potential shifts in consumer spending, which is a major driver of economic growth.   

The February 2025 decline in the CCI may indicate that consumers are becoming more cautious about the economy's future. This could lead to a decrease in consumer spending, which could hurt economic growth.

However, it is important to note that the CCI is just one economic indicator, and it should not be used in isolation to make predictions about the economy. Other factors, such as inflation, interest rates, and employment, also play a role in shaping economic growth.