WASHINGTON (Reuters) – U.S. consumer sentiment fell to its lowest level in more than a decade in early February amid expectations that inflation would continue to rise in the near term, a survey showed on Friday.
The University of Michigan said its preliminary consumer sentiment index dropped to 61.7 in the first half of this month, the lowest since 2011, from a final reading of 67.2 in January.
Economists polled by Reuters had forecast the index edging up to 67.5. The survey’s gauge of current economic conditions fell to a reading of 68.5 from 72.0 in January. Its measure of consumer expectations declined to 57.4 from 64.1 in January.
The survey’s one-year inflation expectations rose to 5.0%, the highest since 2008, from 4.9%, while its five-to-10-year inflation outlook held steady at 3.1%.
The government reported on Thursday that consumer prices recorded their largest annual increase in 40 years in January.
(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
