Consumers’ view of the economy slipped in early February as Americans were more downbeat about future business conditions, according to a University of Michigan survey released Friday.
The preliminary estimate of the index of consumer sentiment came in at 76.2 in February, down from 79.0 in January. The decline in sentiment was concentrated in the measure of future expectations and among households with incomes below $75,000, said Richard Curtin, the survey’s chief economist.
“Households with incomes in the bottom third reported significant setbacks in their current finances, with fewer of these households mentioning recent income gains than anytime since 2014,” Mr. Curtin said. A new round of stimulus payments would presumably reduce financial hardships among those with the lowest incomes, he said.
The sentiment measure was the lowest since August, and down from the 101.0 in February 2020, just before the coronavirus pandemic took hold in the U.S.
The weaker outlook from consumers comes as hiring cooled in December and January, according to the Labor Department. New applications for unemployment benefits, however, have declined since early January, a sign that layoffs, while still high, are easing. U.S. retail spending fell 0.7% in December, according to the Commerce Department. January’s retail spending data will be released next week.
