WASHINGTON, Feb 28 (Reuters) – U.S. consumer confidence unexpectedly fell in February, with the decrease concentrated among lower-middle-income households, though Americans grew more upbeat about the labor market.

The survey from the Conference Board on Tuesday also showed consumers apprehensive about buying big-ticket items like motor vehicles and household appliances over the next six months. But correlation between confidence and consumer spending has been weak. A strong labor market has kept Americans spending despite worries about the future fueled by the Federal Reserve’s stiff interest rate hikes to quell inflation.

“Households are likely cautious given inflation is still elevated and borrowing costs are rising,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics in White Plains, New York. “But they are continuing to spend for now, owing to strong job growth that is restoring incomes.”

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