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Economy

Consumer Sentiment Far Short of Estimates

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By Chris Lange Published
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The preliminary consumer sentiment figures for February have been released by the University of Michigan. The reading was 93.6, which was down from the previous reading of 98.1, the highest that it has reached in the past decade. The Bloomberg consensus estimate for February was 98.5.

The improvement is said to be due to consecutive gains in each of the past six months, with the sentiment index improving by roughly 20% since July 2014.

According to Bloomberg, the University of Michigan’s Richard Curtin said in a statement:

Low gas prices have especially helped lower-income households, although consumers now widely anticipate that gas prices will edge upward during the year ahead.

The current conditions component reading was 103.1, which was down from 109.3 in January, and the expectations component was at 87.5, a decline from the previous 91.0.

Going forward, consumer spirits remain strong, but they are not as strong as they were in January. They also have yet to translate to a similar pickup in consumer spending.

ALSO READ: With Gas Prices Low, Why Are Consumers Staying So Frugal?

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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