University of Michigan: Consumer Sentiment Lowest since Ju
2/07 11:08 AM
University of Michigan: Consumer Sentiment Lowest since July 2024
OAKHURST, N.J. (DTN) --- Preliminary data show the U.S. consumer sentiment
index fell a second month in February, dropping 4.6% from the prior month to
67.8%, the lowest reading since July 2024, according to data released this
morning by the University of Michigan.
All five index components deteriorated in the month profiled, led by a 12%
drop in buying conditions for durables, partly due to a perception it may be
too late to avoid the negative impact of tariff policy. Expectations for
personal finances dropped about 6% from January, reaching its lowest value
since October 2023, and many consumers are worried about the return of high
inflation within the next year.
"Year-ahead inflation expectations jumped up from 3.3% last month to 4.3%
this month, the highest reading since November 2023 and marking two consecutive
months of unusually large increases," said Surveys of Consumers Director Joanne
Hsu.
"This is only the fifth time in 14 years we have seen such a large one-month
rise (one percentage point or more) in year-ahead inflation expectations. The
current reading is now well above the 2.3-3.0% range seen in the two years
prior to the pandemic. Long-run inflation expectations ticked up from 3.2% last
month to 3.3% this month. Long-run inflation expectations remain elevated
relative to the 2.2-2.6% range seen in the two years pre-pandemic."
Inex of consumer expectations fell 2.9% from January to 67.3% in February,
and consumers' current economic conditions index slid 7.2% to 68.7%.
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