U.S. Consumer Confidence Inched Lower in February — University of Michigan

By Ed Frankl

Sentiment among U.S. consumers dipped a little in February, below preliminary estimates and expectations, though held much of the gains in confidence over recent months.

The final reading of the consumer sentiment index dipped to 76.9 in February from 79.0 in January, according to data from a survey carried out by the University of Michigan released Friday. The reading was weaker than expectations of economists polled by The Wall Street Journal, which expected it to remain at its preliminary, mid-month reading of 79.6.

While the index edged lower in February, it kept much of the improvement in sentiment seen over the past three months, according to survey director Joanne Hsu said. It is more than 15 points above its November level, though still eight points short of the historical average since 1978, according to the data.

"Consumers perceived few changes in the state of the economy since the start of the new year, and they appear to be assured that inflation will continue on a favorable trajectory," she said.

Inflation expectations for the next 12 months ticked up in February, reaching 3.0% from 2.9% in January, although are well behind the 4.5% seen in November. Five-year inflation expectations held at 2.9%, the survey said.

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

(END) Dow Jones Newswires

March 01, 2024 10:43 ET (15:43 GMT)

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