United States consumer sentiment rose slightly to reach a six-month high in early February, driven by consumers with large stock portfolios.
The University of Michigan Surveys of Consumers’ index of consumer sentiment was 57.3, up from 56.4 in January but down from 64.7 year-over-year. This was better than forecasts, with Reuters-polled economists predicting a drop to 55.0.
“Sentiment surged for consumers with the largest stock portfolios, while it stagnated and remained at dismal levels for consumers without stock holdings,” wrote University of Michigan Surveys of Consumers director Joanne Hsu.
“While sentiment is currently the highest since August 2025, recent monthly increases have been small—well under the margin of error—and the overall level of sentiment remains very low from a historical perspective. Concerns about the erosion of personal finances from high prices and elevated risk of job loss continue to be widespread.”
The index gauging respondents’ current economic conditions was 58.3, increasing from 55.4 but remaining well below the 65.7 seen one year ago.
The consumer expectations index fell to 56.6 from January’s 57.0, and has seen the largest decline from February 2025’s 64.0.
Expectations for inflation across the next 12 months dropped from 4.0% to 3.5%, the lowest level since January 2025. This is still above 2024’s levels, but “these readings suggest receding concerns about price pressures,” wrote ANZ analysts.
Long-term inflation predictions rose slightly from 3.3% to 3.4%, a second consecutive monthly increase.
The U.S.’ consumer price index grew by 0.3% in December, and by 2.7% annually. It will rise by a further 0.34% in January with an annual rate of 2.5%, ANZ has projected.
