Spooked by tariffs, consumer sentiment wilts as inflation fears mount
|Sentiment fell to a seven-month low as all five index components fell in February, particularly in buying conditions for durables. Year-ahead inflation expectations shot up by a full percentage point to 4.3%, only the fifth time in 14 years inflation expectations have risen so much in just one month. Consumer sentiment surprised to the downside in February's preliminary reading. Among 46 economists polled by Bloomberg, none expected it would be this sharp a decline. Sentiment is now at its lowest point since July 2024. The current conditions index dropped 5.3 points to 68.7, indicating consumers feel uncertain about the current state of the economy. Consumer expectations were down as well, falling 2 points to 67.3, its lowest point since December 2023.Summary
Inflation fears rise as sentiment hits seven-month low
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.