U.S consumer sentiment index fell to a six-month low of 76.2 from 79 last month, according to the University of Michigan press release. The consumer sentiment was far much below a modest improvement expectation index of 80.9.
- The fall in consumer sentiment reflects the deteriorating outlook for personal income and projections of higher inflation in the year ahead.
- Consumers expect a year-ahead inflation rate of 3.3%, the highest since July 2014.
- The outlook for consumers’ finances fell to 116 in early February, the lowest since November 2014.
- Elevated unemployment, limited social activity due to the pandemic, and slow pace of vaccinations also weighed on the consumer expectations.
- The gauge of expectations fell to a six-month low of 69.8, while a measure of current conditions eased to 86.2.
- Five-year inflation projections held at 2.7%, up from 2.3% in February 2020.
U.S stocks are currently mixed as the dollar gains. SPY is up 0.12%, QQQ is down 0.11%, EURUSD is down 0.20%
