CLAMAN KENNY POLCARI and Jose Torres countdown in CONSTRUCTION CONSTRUCTED TO STRESS OF CONSUMERS.
WE feeling of consumers Has decreased more than expected in February at the lowest level for more than a year while expectations concerning inflation increased in the middle of uncertainty surrounding the pricing plans of President Donald Trump.
On Friday, consumer surveys of the University of Michigan published its consumer feeling index on Friday which increased from 71.7 in January to 64.7 in February. It is the lowest reading since November 2023 and was lower than the preliminary reading of 67.8, which was the consensual expectation among the economists interviewed by Reuters.
The surveys of consumer director Joanne HSU noted that if the feeling had fallen for the Democrats and the self -employed, he was unchanged for the Republicans, what she wrote reflected “continuous disagreements on the consequences of new economic policies “.
Households Inflation expectations also increased to 4.3% compared to next year – the highest level since November 2023 and a high increase of 3.3% last month.
Consumer confidence plunged more than expected in February. (Victor J. Blue / Bloomberg via Getty Images / Getty Images)
HSU added that the current reading of inflation expectations is “now much higher than the range of 2.3 to 3.0% observed during the two years preceding the pandemic”.
Over the next five years, households have said they expect inflation to be 3.5%, which has been the highest since 1995 and an increase of 3.2% in January. HSU noted that it was the highest increase from month to month in the metric since May 2021.
“For both long -term inflation expectationsThis month’s increases were widespread and seen in income and age groups. The expectations of inflation increased this month for the self-employed and the Democrats; They fell a little for the Republicans, “Hsu wrote.
Fed minutes show that prices are taken into account in the concerns concerning higher inflation
Household inflation expectations have jumped at the highest level since November 2023. (Gabby Jones / Bloomberg via Getty Images / Getty Images)
The report occurs because inflation has remained obstinately above the 2% objective of the federal reserve in recent months. The consumer price index, a popular inflation gauge, has come Warm than expected at 3% on an annual basis of January.
President Trump The price plans took shape during his first month in power. It announced 10% of prices on imports from China, in addition to the existing samples, which have since taken effect. Trump also delayed 25% of Canada and Mexico prices until the least in early March after the two countries announced border security measures.
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It also announced 25% of prices on imported Steel and aluminumas well as calling a reciprocal rate plan that would correspond to American prices to those imposed by other countries on American exports – which should be implemented following the completion of a study by the administration in April .
Reuters contributed to this report.
