U.S. Consumer Confidence Rises for Third-Straight Month, Confirming Recovery - University of Michigan

By Ed Frankl

Sentiment among U.S. consumers ticked up slightly in February, cementing a recent upswing in confidence as inflation continues to ease.

The preliminary reading Friday of the University of Michigan's consumer-confidence index climbed for the third consecutive month to 79.6 points in February from 79.0 in January. Economists polled by The Wall Street Journal had expected it to increase a little more sharply to 80.0.

"The fact that sentiment lost no ground this month suggests that consumers continue to feel more assured about the economy, confirming the considerable improvements in December and January across various aspects of the economy," survey director Joanne Hsu said.

Sentiment is around 30% above November 2023, albeit still about 6% below its historical average since monthly data collection began in 1978, she said.

Consumers expressed confidence that the slowdown in inflation and strength in labor markets would continue, Hsu added.

However, year-ahead inflation expectations edged up to 3.0% from 2.9% in January, though long-run, five-year expectations stayed at 2.9% for the third month in a row, the data said.

Labor Department data Tuesday said consumer prices rose 3.1% on year in January, hotter than analysts had expected, although still easing from the 3.4% rate of December.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

February 16, 2024 10:35 ET (15:35 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.