Consumer Sentiment Dropped in February as Inflation Worries Escalate

Sentiment was down significantly month-over-month and year-over-year.

Consumer sentiment slid nearly 10% from January and fell for the second straight month. The decrease was unanimous across groups by age, income and wealth. All five components of the sentiment index deteriorated this month, led by a 19% plunge in buying conditions for durables, due in part to fears that tariff-induced price increases are imminent, said economist Joanne Hsu, director of the University of Michigan’s Surveys of Consumers.

The Consumer Sentiment Index fell to 64.7 in the February 2025 survey, down 9.8% from 71.7 in January and 15.9% below last February’s 76.9.