- The index of consumers sentiment rose 1.1 percent in February from January to the highest level since 2018, exceeding market expectations. The index has risen 2.75 percent since December 2016.
- The expected index, an indicator of how consumers’ future sentiment expectations, also rose to 92.6.
- This data aligns with recent Gallup surveys, showing that 61 percent of Americans believe their personal situation is better off than three years ago.
Consumption accounts for approximately two-thirds of U.S. economic activity. This means that consumer sentiment and expectations about the future are vital for continuing the record-long economic expansion. The latest preliminary data from the University of Michigan shows increasingly positive sentiment among consumers and a positive outlook for the future. This should support strong economic growth in 2020.