Americans are losing confidence over inflation and the effects of Donald Trump’s proposed import tariffs.
by Tim Smart
USNews.com
Consumer sentiment took a marked shift downward in the latest University of Michigan’s monthly sentiment survey released Friday as Americans expressed increasing concern about President Donald Trump’s proposed import tariffs and continuing inflation.
The overall consumer sentiment index for February dropped 9.8% from January to a reading of 64.7 while the index of current conditions fell 12.5% to 65.7. The index that measures how consumers feel about future economic conditions dropped 7.9% to 64. Consumer sentiment overall is down nearly 16% from a year ago.
Notably, inflation expectations surged with consumers saying they expect year-ahead prices to rise by 4.3% over the next 12 months, a full percentage point jump from a month ago. And expectations for long-term inflation saw the largest monthly increase since May 2021.