Financial News: U.S. Consumer Sentiment Improves Much Less Than Previously

U.S. Consumer Sentiment Improves Much Less Than Previously Estimated February

02/20/2026 - 10:43:00 (RTTNews)

(RTTNews) - A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. improved by much less than previously estimated in the month of February.

The University of Michigan said its consumer sentiment index for February was downwardly revised to 56.6 from a preliminary reading of 57.3. Economists had expected the index to be unrevised.

With the unexpected downward revision, the consumer sentiment index is just above the January reading of 56.4 but still at its highest level in six months.

While the consumer sentiment index was little changed compared to the previous month, Surveys of Consumers Director Joanne Hsu noted "views vary considerably across the population."

"A sizable month-to-month increase in sentiment for the largest stockholders was fully offset by a decline among consumers without stock holdings," said Hsu. "Similar divergences were seen across income and education, where higher-income or college educated consumers exhibited increases in sentiment while lower-income or less-educated counterparts did not."

She added, "With their much stronger income prospects and investment portfolios, wealthier and higher-income consumers feel better insulated from any possible risks to the economy."

The report also said the current economic conditions index rose to 56.6 in February from 55.4 in January, while the index of consumer expectations edged down to 56.6 in February from 57.0 in January.

With regard to inflation expectations, the University of Michigan said year-ahead inflation expectations tumbled to 3.4 percent in February from 4.0 percent in January, hitting the lowest level since January 2025.

"This month's reading still exceeds those seen in 2024 and remains well above the 2.3-3.0% range seen in the two years pre-pandemic," said Hsu.

Meanwhile, the report said long-run inflation expectations held steady at 3.3 percent in February, just above the 2.8 percent to 3.2 percent range seen in 2024.

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