Consumers have become pessimistic about the economy's future as the Conference Board's Consumer Confidence Index significantly declined by 7 points to 98.3 for the largest monthly decrease since August 2021.
"This is the third consecutive month on month decline, bringing the index to the bottom of the range that has prevailed since 2022," Stephanie Guichard, senior economist of Global Indicators at the Conference Board, said in a statement.
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Even more alarming, the Expectations Index, which is based on consumers' short-term outlook for income, business, and labor market conditions, in February plummeted by 9.3 points to 72.9 points, which is below the index's threshold of 80 that usually signals a recession is approaching.
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The index had dropped by 4.3 points to 82.2 in January 2025 after reporting 86.5 in December.
The Consumer Confidence Index measures consumer confidence in business conditions, the economy, and the labor market, through a monthly survey conducted by tech firm Toluna for the Conference Board, a non-partisan, not-for-profit think tank.
Consumers' opinions of their family's current and future financial situation were less positive, and the proportion of consumers expecting a recession over the next 12 months increased to a nine-month high, according to a Feb. 25 Conference Board statement.
Consumers' intentions to purchase services in the months ahead were not changed as personal and health care priorities, as well as movies and live entertainment, moved up the priority list at the expense of streaming and travel. At the same time, vacation plans continued a downward trend.
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Las Vegas Strip casinos report huge gaming revenue increase
Despite bad news about consumer confidence and the downward trend of vacation plans and travel in January and Februa, the Las Vegas Strip reported an increase in gaming win revenue with a 22.45% year-over-year increase in January 2025 to over $840 million compared to $686 million in the same month in 2024, according to the Nevada Gaming Control Board.
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It was the first increase in monthly gaming win revenue on the Strip after six straight months of decline. However, Las Vegas Strip gaming win revenue still showed a continued decline year-over-year for the fiscal year.
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The improved January numbers were not enough to completely reverse the decline of gaming win revenue on the Strip for the fiscal year from July 1, 2024, through Jan. 31, 2025. Gaming revenue has still declined in the fiscal year by 1.6% year-over-year to $5.28 billion, the Nevada Gaming Control Board said in its January revenue report released on Feb. 27.
Nevada's statewide gaming win results in January followed the Strip's rising trend with a 12.54% increase year-over-year, increasing to $1.43 billion, compared to $1.27 billion in January 2024.
Gaming win revenue for the fiscal year July 1, 2024, through Jan. 31, 2025, was flat year-over year, slightly rising by 0.03% to $9.286 billion compared to $9.284 billion in the same period the previous year.
Downtown Las Vegas gaming revenue declined
Downtown Las Vegas gaming win revenue bucked the rising trend by declining 2.29% to $83.7 million in January, compared to $85.7 million in January 2024.
Win revenue for Downtown Vegas, however, rose for the fiscal year July 1, 2024, through Jan. 31, 2025, by 2.77% year-over-year to $553 million.
Reno's gaming win revenue jumped in January, rising 2.53% to $67 million, compared to $65.4 million in January 2024.
Win revenue in Reno for the fiscal year July 1, 2024, through Jan. 31, 2025, had a slight increase of 1.31% year-over-year to $459.6 million.
South Lake Tahoe also had another significant increase in gaming win revenue in January 2025, rising by 22.37% year-over-year to $22.2 million. The fiscal year of July 1, 2024, through Jan. 31, 2025, increased by 1.44% year-over-year to $155.9 million.
The Nevada Gaming Control Board did not comment on any of the results.
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