Investing.com - Confidence among U.S. consumers rebounded in February, breaking a streak of three-straight monthly declines as the longest federal government shutdown in modern history ended.
The Conference Board said Tuesday its index of consumer confidence rose to 131.4 in February, after three consecutive months of decline. That was ahead of expectations for a reading of 124.7.
The figures offer some reassurance about the health of the economy after shockingly weak retail sales data for January were released last week. It is also broadly consistent with a report on the labor market at the start of the month that wages are still rising and the economy still adding jobs at a steady pace.
Consumer expectations seemed to have recovered, said Lynn Franco, senior director of economic indicators at The Conference Board.
"Looking ahead, consumers expect the economy to continue expanding," Franco said. "However, according to The Conference Board’s economic forecasts, the pace of expansion is expected to moderate in 2019.”
The Present Situation Index rose from 170.2 to 173.5, while the Expectations Index increased to 103.4 in February from 89.4 in January, the Conference Board said.
The index looks at U.S. consumers' views of current economic conditions and their expectations for the next six months. The index is closely watched by economists because consumer spending accounts for about 70% of U.S. economic activity.