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Gen Z bucks trend with economic optimism
25 Feb
Summary
- Younger consumers, especially Gen Z, show increased economic confidence.
- Consumer confidence rose slightly in February, driven by future expectations.
- Unemployment for young adults shows a slow but steady decrease.
Generation Z and young millennials are demonstrating a notable surge in economic confidence, contrasting with the persistent pessimism of older generations. The Conference Board's latest survey indicated a rise in consumer confidence for February, primarily fueled by improved six-month outlooks for income, business conditions, and the jobs market. Despite this uptick, a significant portion of consumers continue to express concerns about prices and inflation.
This youthful exuberance is at odds with some economic indicators, such as slower private payroll growth in January compared to previous years. The job market presents unique challenges for recent graduates, a stark difference from the more favorable conditions of 2023. However, there are emerging signs of improvement, with unemployment rates for individuals aged 19-24 showing a downward trend from late 2025 into January 2026.
Furthermore, consumer sentiment regarding potential recession has eased, with fewer people deeming it "very likely" and more finding it "unlikely." Consumers are also showing more comfort in planning larger expenditures, with dining out, travel, and hotel stays topping their spending intentions for the upcoming six months. Utilities and vehicle service payments also saw increased expectations.
