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US consumer sentiment improved in February 2026, offering a welcome sign of resilience in the world’s largest economy after a shaky start to the year. Newly released survey data showed confidence ticking higher as households reported slightly better expectations for income, business activity, and hiring conditions compared with January, when sentiment had dropped sharply amid worries about inflation and slowing growth.
Economists say the February rebound suggests the US consumer remains a stabilizing force for the economy, even as uncertainty continues to hang over the labor market.
While respondents felt less pessimistic about job prospects than in January, many US consumers still voiced concern about layoffs, wage growth, and hiring momentum across sectors such as technology and manufacturing. The Conference Board said the improvement was concentrated among US consumers aged 54 and younger and among those identifying as Republican or Independent.
Confidence stayed subdued among people 55 and older and among Democrats. President Donald Trump was scheduled to deliver his State of the Union address later Tuesday as voter dissatisfaction with his economic stewardship grew, driven largely by sweeping import tariffs that have pushed up prices.
The improvement follows a difficult January, when confidence readings fell more steeply than analysts expected. That decline had reflected rising costs for housing, food, and borrowing, along with renewed volatility in financial markets. February’s modest recovery indicates those fears have not disappeared but may be easing as inflation shows signs of cooling and financial conditions steady.
Analysts caution that a single month of stronger sentiment does not yet point to a lasting trend. Measures tracking US consumer expectations remain below long‑term averages, indicating households are still careful about spending and major purchases. Retailers and service providers are watching closely because US consumer spending drives roughly two‑thirds of the nation’s economic activity.
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The sharpest rise in confidence came from US consumers in households earning $100,000–$124,999 a year. In contrast, US consumers in lower and middle income brackets — including those earning $15,000–$24,999, $35,000–$49,999, and $50,000–$74,999 reported weaker sentiment, highlighting uneven confidence across income levels.
Even so, analysts caution that a single month of stronger sentiment does not yet point to a sustained or decisive trend. Measures tracking US consumer expectations remain below long‑term historical averages, suggesting many households are still approaching spending decisions carefully and postponing major purchases.
Businesses across retail, travel, and hospitality sectors continue to monitor sentiment closely because US consumer spending accounts for roughly two‑thirds of national economic activity and plays a central role in shaping growth forecasts.
For policymakers, the latest figures offer a mixed yet revealing snapshot of economic conditions and the outlook for the US consumer. Stronger confidence could help sustain growth in the months ahead if continue spending at a healthy pace and maintain resilience despite lingering economic pressures.
At the same time, persistent anxiety about employment conditions could limit momentum if job creation slows or layoffs rise. Federal Reserve officials have repeatedly emphasized that labor market stability will be a decisive factor shaping interest‑rate policy throughout the year, making trends in US consumer sentiment especially significant.
Overall, February’s survey suggests the US consumer is gradually regaining footing after January’s setback, yet not strongly enough to dispel broader concerns about the labor market and long‑term growth.
The coming months will determine whether this rebound marks the beginning of a sustained recovery in confidence or simply a temporary lift driven by short‑term improvements in sentiment and financial conditions. Economists say continued monitoring of consumer attitudes will be essential for understanding the trajectory of the US economy in 2026.
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