Us Consumer Sentiment Steady

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Us Consumer Sentiment Steady

Us Consumer Sentiment Reached 79.6 In February

According to a survey, a slight uptick was recorded in the US consumer sentiment. At the same time, the survey also revealed that the inflation rate (1-year) has gone up.

The consumer sentiment index is released by the University of Michigan and is used to gauge the sentiment of US consumers. According to the survey, the reading for consumer sentiment in February is 79.6, higher than 79 in January.

Us Consumers Are Optimistic

According to economists, a reading of around 80 was expected, which means the actual value was around -0.4 lower.

According to senior economists, the sentiment reading didn't drop during February & and registered a minor uptick. This indicates that the average US consumer is confident about the economy's health.

The survey also tells us that US consumers welcomed the improvements seen during December and January. Some key factors that have improved consumer sentiment include lower inflation and a tight labour market.

Their survey also showed that the forecast for one-year inflation is now 3.0% from the earlier reading of 2.9%. Additionally, the estimates for short-term inflation are now around 2.3% to 3.0% in the next two years.

In the next five years, the inflation rate in the USA will likely touch 2.9%, according to the US consumer survey. This is the 3rd month in a row that this figure remains unchanged.

This also highlights that US consumers are now more optimistic about the prospects of a slowdown in inflation. It is also important to note that this survey only highlights the thought process of US consumers.

The actual inflation outlook and the economy's health depend on complex economic data. With the recent CPI report, the actual data is coming a little differently than the thinking of most US consumers.

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