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. <br>
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The New York-based Conference Board said Tuesday that its Consumer Confidence Index fell to 94.1 this month from a revised 97.8 in January. Analysts were expecting a reading of 97. <br>
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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. <br>
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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. <br>
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``The consumer will continue to provide solid spending support as the economy moves into recovery,'' Franco said. <br>
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The index compares results to its base year, 1985, when it stood at 100. The February figure was the lowest since November, when the reading dipped to an all-time low of 84.9 following the Sept. 11 attacks. <br>
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On Wall Street, key stock indexes were higher on the news. The Dow Jones average was up 20 points to 10,166 and the Nasdaq composite index rose 12 points to 1,782. <br>
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To help prop up the economy, the Federal Reserve cut interest rates 11 times last year. But it left rates unchanged last month, citing more prevalent signs that ``weakness in demand is abating and economic activity is beginning to firm.'' Fed Chairman Alan Greenspan was to address a congressional panel Wednesday. <br>
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The Conference Board said consumers' assessment of ongoing business conditions was less favorable than in previous months. Consumers rating current business conditions as good declined to 17.2 percent from 18.2 percent in January. Consumers who felt business conditions were bad rose slightly to 22.9 percent from 22.4 percent last month. <br>
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Consumers' feelings about economic prospects for the next six months also were less optimistic. Those expecting an improvement in business conditions dropped to 22.0 percent from 24.9 percent in January, the report said. Those expecting conditions to sour rose to 11.3 percent from 9.8 percent. <br>
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And consumers' outlook about jobs declined. In February, 18.4 percent said they expect more jobs to become available in the next six months, compared with 18.9 percent in January. Those expecting fewer jobs to open up increased to 19.3 percent from 18.0 percent. <br>
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The Conference Board is a nonprofit research and business group, with more than 2,700 corporate and other members around the world. <br>
