US Consumer Sentiment Holds Steady in February
U.S. Consumer Sentiment Unchanged in February
U.S. consumer sentiment remained largely unchanged in February, according to a recent survey. The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 79.6 this month, compared to 79.0 in January. This suggests that consumers continue to feel more assured about the economy.
Inflation Expectations Tick Up
While consumer sentiment held steady, one-year inflation expectations edged up to 3.0% this month from 2.9% in January. This increase is within the 2.3%-3.0% range seen in the two years prior to the COVID-19 pandemic, indicating some level of stability in inflation expectations.
Consumers Express Confidence in Economy
Despite the uptick in inflation expectations, consumers continued to express confidence that the slowdown in inflation and strength in labor markets would persist. This sentiment is a positive sign for the overall health of the economy, as consumers play a crucial role in driving economic activity.
Steady Five-Year Inflation Outlook
The survey’s five-year inflation outlook remained unchanged at 2.9% for the third straight month. This suggests that consumers are not anticipating significant changes in long-term inflation trends, providing a sense of stability in their outlook for the future.
Overall, the survey indicates that while there are slight shifts in inflation expectations, consumer sentiment remains relatively steady. This stability is a positive indicator for the ongoing health of the U.S. economy.
