Spending healthy despite decline in confidence

Tuesday, Feb. 26, 2002 | 9:27 a.m.

NEW YORK -- Consumer confidence declined in February, hurt in part by increased pessimism about the jobs outlook and the economy, reversing two straight monthly gains.

The New York-based Conference Board said today that its Consumer Confidence Index fell to 94.1 this month from a revised 97.8 in January.

The industry group's index, based on a monthly survey of some 5,000 U.S. households, is closely watched because consumer confidence drives consumer spending, which accounts for about two-thirds of the nation's economic activity.

Lynn Franco, director of the Conference Board's research center, said despite weaker confidence in February, she expects continued "healthy consumer spending" in the months ahead.

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