In the News – Consumer sentiment in February was second-highest in 14 years
The numbers: The University of Michigan’s consumer sentiment index in February was the second-strongest it has been in 14 years, though the final reading was revised lower a touch to 99.7.
The initial reading was 99.9, and the MarketWatch-compiled economist forecast was for a 100 reading. The index was at 95.7 in January.
What happened: Consumers had favorable assessments of jobs, wages, and higher after-tax pay, the University of Michigan said. The highest proportion of households since 1998 reported that their finances had improved compared with a year ago.
Interestingly, the report said the tax cuts haven’t generated universal support, unlike previous reductions. The report noted a partisan split in reaction to them.
The big picture: With tax cuts being added onto an economy that already had high employment, consumers have been in a good mood. The University of Michigan said the data is consistent with a 2.9% gain in inflation-adjusted spending this year.
For more information visit: https://www.marketwatch.com/amp/story/guid/AC4618C4-1E28-11E8-9B24-BAC25199BBC0