US consumer confidence falls sharply in February

The US consumer confidence index dropped to 98.3 in February, declining from January’s upwardly revised 105.3 and strongly undershooting consensus at 102.7.

February fall was the biggest since August 2021 and hit the lowest since June 2024, also marking the fourth consecutive month of consumer confidence decline.

Rise in inflation expectations contributed to strong declaration in consumer confidence, with other key driver being tariff policies of President Trump’s administration, which boosted worries of further inflationary pressures that would directly fuel the rise of prices for households.