U.S. Consumers Are Feeling More Downbeat in February
February 12, 2021
American consumers’ feelings about the economy started February on a down note. Concerns about future business conditions pulled the University of Michigan’s consumer sentiment index down.
The index fell to 76.2 for the month, down from 79.0 in January. The decline in sentiment was primarily concentrated in households making less than $75,000 per year. These households reported concerns with their current finances and concerns about the lack of recent income gains.
February’s reading was the lowest since August, and far less than the 101.0 reading in February 2020, just before the coronavirus pandemic began its spread in America.
Consumer sentiment carries extra importance during the post-pandemic recovery, as consumer spending is expected to drive much of the economic activity as business restrictions are lifted.