Consumer sentiment solidifies sharp gains

Consumer sentiment was virtually unchanged in February, slipping just two index points and solidifying the large gains from December and January, according to the University of Michigan Surveys of Consumers. Consumers continue to express more confidence about the economy than they did last fall, confirming the considerable improvements in December and January across various aspects of the economy, said U-M economist Joanne Hsu , director of the Surveys of Consumers. Year-ahead expectations for business conditions reached its highest reading since July 2021. Sentiment is currently about 25% above November 2023 and about 9% below its historical average since monthly data collection began in 1978. "The latest reading confirmed the remarkable improvement in consumers' economic views that began in December 2023,- Hsu said. "As they did in January, consumers continue to feel assured that inflation will continue to slow down going forward, though many remain weighed down by prices that remain high. "Many consumers are looking ahead to the upcoming election, but at this early juncture in the election cycle, political uncertainty has yet to weigh down sentiment at this time.