Financial News: U.S. Consumer Sentiment Unexpectedly Slumps In February As

U.S. Consumer Sentiment Unexpectedly Slumps In February As Inflation Expectations Surge

02/07/2025 - 10:29:00 (RTTNews)

(RTTNews) - Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of February, according to preliminary data released by the University of Michigan on Friday.

The University of Michigan said its consumer sentiment index slumped to 67.8 in February after rising to 71.1 in January. Economists had expected the index to inch up by to 72.0.

With the unexpected decrease, the consumer sentiment index dropped to its lowest level since hitting 66.4 in July 2024.

The deterioration by consumer sentiment came amid a surge by year-ahead inflation expectations, which spiked to 4.3 percent in February from 3.3 percent in January, reaching the highest level since November 2023.

Long-run inflation expectations also ticked up to 3.3 percent in February from 3.2 percent in January, remaining elevated relative to the 2.2-2.6 percent range seen in the two years pre-pandemic.

"Many consumers appear worried that high inflation will return within the next year," said Surveys of Consumers Director Joanne Hsu.

The report also said the current economic conditions index tumbled to 68.7 in February from 74.0 in January, while the index of consumer expectations fell to 67.3 in February from 69.3 in January.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Croatia Trade Gap Narrows In December (38 min(s), 17 sec(s) ago)
(RTTNews) - Croatia's goods trade deficit decreased marginally in December from the previous m ...Full Story»

U.S. Wholesale Inventories Decrease In Line With Estimates In December (03 hr(s), 01 min(s), 17 sec(s) ago)
(RTTNews) - The Commerce Department released a report on Friday showing wholesale inventories in t ...Full Story»

U.S. Consumer Sentiment Unexpectedly Slumps In February As Inflation Expectations Surge (03 hr(s), 30 min(s), 17 sec(s) ago)
(RTTNews) - Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of February, ...Full Story»

U.S. Employment Climbs Less Than Expected In January (05 hr(s), 23 min(s), 17 sec(s) ago)
(RTTNews) - While the Labor Department released a report on Friday showing employment in the U.S. ...Full Story»

French Trade Deficit Narrows Sharply In December (05 hr(s), 24 min(s), 17 sec(s) ago)
(RTTNews) - France's trade deficit declined sharply in December as exports logged a notable gr ...Full Story»

India Cuts Interest Rates For First Time Since 2020 (06 hr(s), 01 min(s), 17 sec(s) ago)
(RTTNews) - The Reserve Bank of India reduced its key interest rates for the first time in nearly ...Full Story»

Taiwan Inflation Nears 1-Year High, Trade Surplus Grows (08 hr(s), 01 min(s), 17 sec(s) ago)
(RTTNews) - Taiwan consumer price inflation accelerated further in January to the highest level in ...Full Story»

German Exports Rise Unexpectedly; Imports Rebound (08 hr(s), 04 min(s), 17 sec(s) ago)
(RTTNews) - German exports expanded unexpectedly and imports rebounded in December but overall exp ...Full Story»