A report from
the University of Michigan revealed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment increased 0.8 per cent m-o-m
to 79.6 in early February. This was the highest reading
since July 2021 (81.2).
Economists had expected
the indicator would rise to 80.0 this
month from the January final
reading of 79.0.
According to
the report, the index of current economic conditions decreased 0.5 per cent
m-o-m to 81.5 in February, while the index of consumer expectations climbed 1.7
per cent m-o-m to 78.4.
The report also
showed that the estimates of year-ahead expected inflation increased from 2.9
per cent in January to 30 per cent early this month, while the 5-year expected inflation remained
unchanged at 2.9 per cent for the third straight month.
Commenting on
the latest findings, Surveys of Consumers Director Joanne Hsu noted the fact
that sentiment lost no ground this month suggests that consumers continue to
feel more assured about the economy, confirming the considerable improvements
in December and January across various aspects of the economy. “Consumers
continued to express confidence that the slowdown in inflation and strength in
labour markets would continue,” she added.