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%. (c) Copyright 2025 DTN, LLC. All rights reserved.