Friday, February 12, 2016

Preliminary February Consumer Sentiment decreases to 90.7

by Bill McBride on 2/12/2016 10:05:00 AM

The preliminary University of Michigan consumer sentiment index for February was at 90.7, down from 92.0 in January:

"Consumer confidence continued its slow decline in early February, with its current level just below the average recorded during the 2nd half of 2015 (91.0). The small early February decline was due to a less favorable outlook for the economy during the year ahead, while longer term prospects for the national economy remained unchanged at favorable levels. While slowing economic growth was anticipated to slightly lessen the pace of job and wage gains, consumers viewed their personal financial situations somewhat more favorably due to the expectation that the inflation rate would remain low for a considerable period of time. Indeed, consumers anticipated the lowest long term inflation rate since this question was first asked in the late 1970's. "
emphasis added
This was below the consensus forecast of 92.5.

Consumer Sentiment
Click on graph for larger image.