Valentine’s Day may be around the corner, but consumers aren’t feeling much love for the U.S. economy as the threat of tariffs reignites concerns of a spike in inflation.
The University of Michigan’s consumer sentiment index dropped for the second straight month to a reading of 67.8 from January’s 71.1, according to preliminary data released Friday. Economists were expecting the index to tick up to a reading of 72, according to FactSet.
This is the lowest reading since July 2024, said Joanne Hsu, director of consumer surveys at the University of Michigan. She adds that the decrease in sentiment was “pervasive” across age and income demographics, as well as political party affiliation.
