February Consumer Sentiment Up 6.7% YOY
Ann Arbor, MI, February 24, 2023-Consumer sentiment rose 3.2% in February to 67.0, according to final results from the University of Michigan Survey of Consumers.
This represents a 6.7% increase year over year.
“Consumer sentiment confirmed the preliminary February reading, rising a modest 3% above January,” according to Survey of Consumers director Joanna Hsu. “After lifting for the third consecutive month, sentiment is now 17 index points above the all-time low from June 2022 but remains almost 20 points below its historical average. Consumers with larger stock holdings exhibited particularly large increases in sentiment. Overall, February’s reading was supported by a 12% improvement in the short-run economic outlook, while all other index components were essentially unchanged.
“Year-ahead inflation expectations rebounded to 4.1% this month, from 3.9% in January and 4.4% in December. Consumers continued to exhibit considerable uncertainty over short-run inflation, and thus their expectations may be unstable in the months to come. Long-run inflation expectations remained at 2.9% for the third straight month and stayed within the narrow 2.9-3.1% range for 18 of the last 19 months.”