Source: University of Michigan
Consumer sentiment continued to decline in February to mark the lowest level in a decade amid inflationary concerns.
- The Index of Consumer Sentiment stood at 61.7 in February, down by 8.2% from January’s 67.2 and 19.7% lower than February 2021’s 76.8.
- The decline is attributed to the weakening personal financial prospects, due to the continued increase in inflation, along with less economic confidence.
- The lower sentiment was recorded among households with incomes of at least $100,000, falling by 16.1% from the past month and 27.5% from the past year.
- The assessment of economic conditions indicator was 68.5, down by 4.9% from January’s 72.0 and 20.5% lower than February 2021’s 86.2.
- The Index of Consumer Expectations stood at 57.4, indicating a 10.5% fall from January’s 64.1 and 18.8% decline from 70.7% in February 2020.
- The latest declines reflect a sustained decline in consumer spending, but the depth of the drop is still subject to a number of caveats not presented in prior downturns.