U.S. consumer sentiment moved lower than expected in February, with two thirds of those surveyed forecasting the economic downturn to last 5 more years.
According to a preliminary report from Reuters and the University of Michigan on Friday morning, the headline consumer sentiment index fell to 56.2 from a final reading of 61.2 in January, despite expectations for a decline to a 60.2 level by a survey of economists.
Respondents to the survey were nevertheless more positive about the current situation, with that index up to 69.2 from 66.5 the month prior. However, the outlook indicator decreased to 49.1 in February from 57.8 - its lowest level in 23 years.
The report also noted a decrease in inflation expectations for the United States, with consumers seeing a 1.6% rate of inflation over the next 12 months and a 3.0% rate over the next five years. In January, these expectations were 2.2% and 2.9%, respectively.
By Megan Ainscow and edited by Sarah Sussman
©CEP News Ltd. 2009