Arlington, Va. – Consumer confidence in the overall economy and technology took a hit in February as consumers remain skittish over ongoing economic issues impacting the country, according to the Consumer Electronics Association (CEA).
The CEA’s Index of Consumer Expectations fell 2.7 points in February to 165.3. This is the second consecutive month confidence in the broader economy has dropped.
Also enduring a decline this month is the CEA’s Index of Consumer Technology Expectations, which fell 5.6 points to 77.4.
Shawn DuBravac, CEA’s chief economist and research senior director, pointed to several factors likely behind this news.
“The 2 percent payroll tax increase that went into effect at the beginning of the year is likely starting to have an impact on consumer purchasing decisions,” said DuBravac.
“Moreover, consumers remain concerned about U.S. fiscal policy as they attempt to internalize the potential impact from the impeding federal budget sequestration,” DuBravac added.