US consumer sentiments dropped unexpectedly in February to seven months and inflation expectations that skyrocketed because households were worried that it would be late to avoid the negative impact on their purchasing power from the threatened rate of President Donald Trump.
The University of Michigan consumer survey on Friday said the consumer sentiment index fell to 67.8 from the last January reading at 71.1, which was also a consensus expectation among economists surveyed by Reuters.
Meanwhile the household sees inflation during the next year soaring to 4.3% – the highest since November 2023 – from 3.3% last month. Over the next five years they saw inflation running at 3.3% – the highest since June 2008 – from 3.2% in January.
Source: Reuters
