02.23.2011 11:00 AM
CEA: Consumer Confidence Falls in February
ARLINGTON, VA.: Consumer confidence in the economy is down
this month, according to the latest data from the Consumer Electronics
Association. Tech spending is also down, the organization reported.
After increasing for six consecutive months and reaching a 35-month high in
January, confidence in the overall economy fell more than three points in
February, CEA said. Its Index of Consumer Expectation, or ICE, dropped to 172
from 175.7 in January, when it peaked. The ICE measures consumer expectations
about the broader economy. The ICE was 165 in February of 2010.
“Compared to last month, consumers’ expectations for employment increased but
their expectations for the broader economy slipped slightly,” said Shawn
DuBravac, CEA’s chief economist and director of research. “We also might be
seeing the first signs of higher commodity prices influencing consumer
Consumer confidence in technology spending also fell in February. The CEA Index
of Consumer Technology Expectations, or the ICTE, which measures consumer
expectations about technology spending, dropped nearly 12 points this month to
76.2. The metric is the lowest in 10 months and down more than five points from
a year ago.
“Consumers indicated they will spend less on consumer electronics, which is
typically muted in the first quarter of every year,” DuBravac said. “Some of
the decline in sentiment is related to consumers anticipating new product
launches that happen in March for many key products.”