Consumer Sentiment Falls in February

The Reuters/University of Michigan consumer sentiment index fell to 72.5 in February, down from a revised reading of 75 in January. Economists had been expecting a rise to 75.5.

The downturn likely reflects higher gasoline prices and ignores the overall rise in other economic indicators like the unemployment report and housing starts. It’s also possible that US consumers are taking a breather, as one analyst told MarketWatch:

Overall, the souring in household moods in February is somewhat at odds with the improvements seen in labor market conditions and the economic recovery more generally in recent months. However, when seen in the context of the sustained gains since August, the modest pull-back in confidence not may not be that surprising, after all.

The simple fact is that Americans still have concerns about their own economic situations which they see as being batted around by forces over which they have little control.