Consumer sentiment in the U.S. improved slightly more than initially estimated in the month of February, according to revised data released by the University of Michigan on Friday.
The report said the consumer sentiment index for February was upwardly revised to 67.0 from the preliminary reading of 66.4.
Economists had expected the consumer sentiment index to be unrevised, which would still reflect an increase from 64.9 in January.
“After lifting for the third consecutive month, sentiment is now 17 index points above the all-time low from June 2022 but remains almost 20 points below its historical average,” said Surveys of Consumers Director Joanne Hsu.
“Consumers with larger stock holdings exhibited particularly large increases in sentiment,” she added. “Overall, February’s reading was supported by a 12% improvement in the short-run economic outlook, while all other index components were essentially unchanged.”
The report showed the current economic conditions index climbed to 70.7 in February from 68.4 in January, while the index of consumer expectations rose to 64.7 from 62.7.
The report also said one-year inflation expectations increased to 4.1 percent in February from 3.9 percent in January, with expectations rebounding after falling for three straight months.
Meanwhile, five-year inflation expectations remained at 2.9 percent for the third straight month and stayed within the narrow 2.9-3.1 percent range for 18 of the last 19 months.
“Consumers continued to exhibit considerable uncertainty over short-run inflation, and thus their expectations may be unstable in the months to come,” said Hsu.
Source: Read Full Article