US consumer confidence reached **91.2** in February 2026, surpassing the revised **89.0** recorded in January. While this signals a modest recovery from the 11-year lows seen earlier this year, the index remains significantly below the **112.8** peak achieved in late 2024. The rebound was primarily fueled by a jump in the Expectations Index, which rose **4.8 points** to reach **72.0**. This suggests that consumers are becoming less pessimistic about the short-term outlook for income and business conditions. However, the Present Situation Index, which tracks current sentiment, softened to **120.0**. Labor Market Duality The employment landscape is showing sharp contradictions. The share of consumers stating that jobs are "plentiful" rose to **28%**, a three-month high. Conversely, the number of respondents claiming jobs are "hard to get" climbed to **20.6%**, the highest level since February 2021. This "low-hire, low-fire" environment has pushed the labor market differential to **+7.4%**. Economists warn that while current unemployment remains stable at **4.3%**, the rising difficulty in finding new roles for some demographics suggests a potential rebound in the unemployment rate in upcoming reports. Demographic & Political Shifts Optimism is heavily segmented by age and affiliation. Consumers under age **35** remain the most optimistic group, driving much of the moving average upward. In contrast, confidence among those aged **35** and older edged lower. Sentiment also diverged along political lines. Confidence revived among Republican and Independent voters during February, while Democrats reported becoming less optimistic about the economic trajectory. Inflation and Spending Trends Despite the headline improvement, inflation concerns remain the top priority for households. Median 12-month inflation expectations are currently held at **4.4%**. Write-in responses frequently cited high prices, trade policy uncertainty, and political shifts as primary stressors. Spending intentions are shifting toward "necessary services" and smaller discretionary purchases. * **Buying Plans:** Interest in used cars, furniture, and smartphones is trending upward. * **Housing:** Homebuying plans continue to retreat as consumers expect interest rates to remain elevated for the next year. * **Travel:** Vacation plans saw a slight dip for both domestic and international trips. Wall Street Outlook Investors are processing these mixed signals as the Federal Reserve weighs future rate cuts. While the fourth-quarter GDP growth was a modest **1.4%**, recent hiring of **130,000** jobs in January suggests underlying resilience. Markets remain sensitive to tariff risks and the persistent gap between consumer expectations and the reality of current business conditions. The Expectation Index has now spent **13 consecutive months** below the **80** mark, a level historically associated with heightened recession risk.