Consumer Sentiment Slips From Post-Election High

Wells Fargo Research Team Wells Fargo

The University of Michigan's consumer sentiment index dipped to 96.3 in February from its cycle-high of 98.5 in January. The index of current economic conditions continues to rise and expectations dipped slightly.

Consumers Upbeat About Current Economy

University of Michigan's consumer sentiment index dipped 2.2 points in February to a reading of 96.3. The index of consumer expectations fell but remains well above pre-election levels.
Expectations for improved business conditions over the next year gave back some of their post-election jump in February. While still upbeat, consumers may be reassessing how quickly potential policy changes will impact business conditions.

Inflation Expectations Remain High

Consumers' assessment of their current personal finances is at its highest level in over a decade. While expected changes over the next year dipped slightly, long-term prospects remain high.
Inflation expectations have picked up over the past few months, possibly reflecting rising gasoline prices. Year-ahead inflation expectations rose to 2.7 percent in February, up from 2.6 percent in January and 2.2 percent in December.

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