The University of Michigan Consumer Confidence Index hit a one-year high in February. Although the expectations index fell slightly, the improvement in the current situation index contributed. Inflation expectations for the year ahead rose, but remained well below levels seen in the first half of last year.
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Inflation expectations for the next 5 to 10 years were 2.9%, the same level as the previous two months.
On the 14th, the consumer price index (CPI) for January will be released. Market expectations rose 0.5% from the previous month.
The current situation index released by the University of Michigan improved to 72.6 in February from 68.4 in the previous month. The rebound in stock prices has supported the households of stock-holding consumers and led to optimism.
On the other hand, the expectations index fell to 62.3 from the previous month’s 62.7.
“Consumers are becoming more cautious about their spending over the next few months, partly due to concerns about rising unemployment,” said Joan Shu, director of consumer research at the University of Michigan, in a statement.
See table for detailed statistics.
Original title:US Consumer Sentiment Increases to a More Than One-Year High(excerpt)
(Add and update stats details)