February consumer confidence drops
The early read on consumer confidence in February shows it has dropped from January, disappointing forecasters.
According to the Reuters/University of Michigan monthly survey released moments ago, the consumer confidence index dropped from a recent high of 74.4 in January to 73.7 in February. Forecasters had expected consumer confidence to continue climbing, hitting 75.
The index is broken down into two parts -- the present situation index and the expectations index.
The present situation index -- how consumers feel about their situation right now -- dropped from 84.1 in January to 81 in February.
The expectations index -- how consumers think the economy will be six months -- dropped from 70.1 in January to 66.9 in February.
The January bump could have been residual Christmas good feelings or it could have been a reaction to the fourth-quarter GDP, which came in at a 5.7 percent annual growth rate.
But a month removed, with unemployment still up around 10 percent, perhaps the optimism is fading.
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February 12, 2010; 10:11 AM ET
| Tags: consumer confidence
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