(Reuters) – The level of consumer sentiment in the United States experienced a larger-than-anticipated decrease in February, reaching a 15-month low due to rising concerns over economic instability. Inflation expectations also soared as households expressed fears that President Donald Trump’s proposed tariffs could negatively impact their purchasing power. According to the University of Michigan Surveys of Consumers, the Consumer Sentiment Index fell to 64.7 from the revised final figure of 71.7 recorded in January. This latest reading, the lowest since November 2023, came in below both the preliminary figure of 67.8 and the consensus forecast among economists surveyed by Reuters.
Additionally, households reported an anticipated inflation rate of 4.3% for the upcoming year, marking a significant increase from the previous month’s rate of 3.3% and reaching the highest level since November 2023. This figure remained consistent with the preliminary reading released two weeks earlier. Looking ahead to the next five years, households projected inflation to run at 3.5%, the highest rate since 1995, compared to 3.2% in January. This represented an increase from the preliminary reading of 3.3% issued two weeks prior.
(Reporting By Dan Burns; Editing by Chizu Nomiyama)
