(University of Michigan) The Index of Consumer Sentiment in the US fell 8.2% in February from January to 61.7, the worst in a decade.
Compared to last year, the index of consumer sentiment fell 19.7% in February.
The fall in consumer sentiment reflected an adverse outlook on personal financial prospects due to rising inflation, declining confidence in the government’s economic policies, and a less favorable economic outlook.
Consumers judged their current economic conditions less favorably, with the index falling 4.9% from the previous month to 68.5. The index of Current Economic Conditions was 20.5% below last year.
Americans remained less upbeat of the future, with the Index of Consumer Expectations edging lower by a monthly 10.5% to 57.4. The index was 18.8% below last year.
Surveys of Consumers chief economist Richard Curtin says the declines in Sentiment Index signals the start of a downturn in consumer spending. He still sees a lessened need for precautionary saving and a stronger desire for discretionary spending compared to prior downturns in sentiment.
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