UoM consumer sentiment falls to lowest reading in over ten years
A preliminary reading showed the University of Michigan's consumer sentiment index fell sharply to 61.7 in February, the lowest reading since October 2011 and well below forecasts for a slight rise from 67.2 in January to 67.5.
According to the report, the decline was a result of weakening personal financial prospects, principally due to rising inflation, decreased confidence in the White House's economic policies, and the weakest long-term economic outlook in over ten years.
The current economic conditions subindex fell to 68.5, for its lowest print since August 2011, while the expectations gauge dropped to 57.4 for its lowest reading since November 2011. Consumers also expect inflation to be at 5% in twelve months time, while the five-year outlook was unchanged at 3.1%.