US Consumer Sentiment Posts Surprise Drop From Initial Reading

  • University of Michigan preliminary and final readings diverged
  • Consumers still think inflation is cooling, survey says

Consumers expect prices will climb at an annual rate of 3% over the next year.

Photographer: Christinne Muschi/Bloomberg
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US consumer sentiment faltered in late February as current views of the economy and the outlook deteriorated, marking a reversal from earlier in the month that showed a pickup in optimism.

The sentiment index declined to 76.9 from a preliminary reading of 79.6, according to the final February survey from the University of Michigan. The intramonth drop was the biggest since March 2020.