University of Michigan: Consumer Sentiment Improves in Feb

VIENNA (DTN) — U.S. consumer sentiment continued to improve in February, with the Index of Consumer Sentiment rising 0.9 points to a six-month high 57.3, according to preliminary data from the University of Michigan’s Surveys of Consumers released Friday (2/6) morning. It marked the third consecutive monthly improvement for the index, which plummeted in November to its lowest reading in three and a half years.

Despite the move higher, the index remains down 7.4 points, or 11.4%, year-over-year.

For January, it was revised to 56.4 from a prior reading of 54.

The Index of Consumer Expectations, which reflects the economic outlook over the next 12 months, fell 0.4 points to 56.6. That was 0.7% lower month-on-month and down 11.6% when compared with the same month of last year. 

The Current Economic Conditions Index, measuring sentiment on personal finances and buying conditions, rose 2.9 points to 58.3. But year-on-year, that index was also down, by 11.3%.

“While sentiment is currently the highest since August 2025, recent monthly increases have been small — well under the margin of error — and the overall level of sentiment remains very low from a historical perspective,” said University of Michigan’s Surveys of Consumers Director Joanne Hsu.

“Concerns about the erosion of personal finances from high prices and elevated risk of job loss continue to be widespread,” she added.

While year-ahead inflation expectations fell by 0.5 percentage points to 3.5%, the lowest reading since January 2025, they are still above readings seen in 2024.

Long-run inflation expectations, meanwhile, rose for a second month in a row, up 0.1 points to 3.4%.