Sentiment holds steady amid confidence in slowing inflation

Sentiment remained essentially unchanged since January 2024, solidifying the large gains from December and January, according to the University of Michigan Surveys of Consumers. Consumers exhibited confidence that inflation will continue to soften, said U-M economist Joanne Hsu , director of the Surveys of Consumers. Assessments and expectations of personal finances improved modestly from last month, as the perceived negative effects of high prices and expenses on living standards eased. Year-ahead expectations for business conditions reached its highest reading since July 2021. Sentiment is currently about 30% above November 2023 and about 6% below its historical average since monthly data collection began in 1978. "Over the first three months of 2024, consumers have consistently expressed that the economy appears to be holding its course,- Hsu said. "However, with the general election looming on the horizon, many mentioned that their views remain tentative and subject to change.