by Consumers appear ready to make big-ticket purchases for the home and that could accelerate given recent developments around the world, including the war in the Middle East
WASHINGTON — The latest consumer confidence report released in late February offers some glimmers of hope for large-ticket durable goods purchases including furniture.
According to the monthly survey, more consumers indicated they plan to make big-ticket purchases than not, with furniture, TVs, smartphones and used cars high on the list of priorities.
The fact that furniture is on this list indeed may be a surprise given that homebuying plans remained unchanged from January, although the share of consumers who plan to buy a home were above last year, the report said.
In fact, consumers’ plans to buy furniture — along with TVs, dishwashers and ranges — also rose on a six-month moving average basis, while plans to buy a home declined on the same six-month moving basis. Buying plans for refrigerators and washing machines also declined over the same period, the report noted.
Other categories where consumers plan to spend over the next six months include utilities, pet care and dining out.
The report went on to state that streaming, internet, mobile services, beauty and personal care and personal travel were the Top 5 categories where consumers plan to spend over the next six months. However, planned spending in each segment declined.
Meanwhile, overall vacation plans over the next six months also declined both for domestic and international travel. Expected spending on airfare and trains for personal travel was unchanged, the report said.
And given the United States war with Iran that continues to escalate, even less people may be inclined to travel internationally. Thus sheltering in place could be a good thing for furniture sales, particularly as conditions deteriorate in the Middle East.
Overall, the Consumer Confidence Index rose 2.2 points in February to 91.2, from an upwardly revised 89 in January. Meanwhile, the Present Situation Index based on consumers’ assessment of current business and labor market conditions decreased 1.8 points to 120, and the Expectations Index based on consumers’ short-term outlook for income, business and labor market conditions rose by 4.8 points to 72.
“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat,” said Dana M Peterson, chief economist, The Conference Board. “Four of five components of the index firmed. Nonetheless, the measure remained well below the four-year peak achieved in November 2024 (112.8).”
Peterson added that consumers’ write-in responses on factors affecting the economy “continued to skew towards pessimism. Comments about prices, inflation and the cost of goods remained at the top of consumer’s minds. Mentions of trade and politics also increased in February. Labor market mentions eased a bit in February, while observations about immigration increased somewhat.”
Again the war in the Middle East will likely impact confidence further during the month of March, as consumers fear for their safety at home and abroad and instead find safety by staying at home. It’s a familiar theme that reminds us of the the global pandemic, which ultimately benefited furniture sales at least over the short term.
Other highlights of the February report were as follows:
+ Among demographic groups, confidence on a six-month moving average basis rose in February for consumers under age 35, which the Conference Board described as “the most optimistic group.”
+ Confidence declined for respondents ages 35 and older.
+ Also, on a six-month moving average basis, confidence among Generation Z rose, “consistent with soundings from the under-age 35 group, but fell among other generations.”
+ By income, confidence on a six-month moving average basis declined for most brackets.
+ Consumer confidence by political affiliation revived among Republican and Independent voters in February after a dip in January, while Democrats were less optimistic.
