The University of Michigan's Surveys of Consumers reported a small gain in U.S. consumer sentiment in early February, with the headline Consumer Sentiment Index rising to 57.3 from a final reading of 56.4 in January. The movement represents a modest improvement in household attitudes, though the overall level remains low when viewed in historical context.
Economists polled had anticipated a decline in the index to 55.0, but the actual result surpassed that forecast. The survey also recorded a shift in inflation expectations: consumers' outlook for inflation over the next year fell to 3.5% in February from 4.0% in January, while expectations for inflation over the next five years rose to 3.4% from 3.3% the prior month.
"While sentiment is currently the highest since August 2025, recent monthly increases have been small, and the overall level of sentiment remains very low from a historical perspective," said Joanne Hsu, the director of the Surveys of Consumers. "Concerns about the erosion of personal finances from high prices and elevated risk of job loss continue to be widespread."
The survey indicates that, although there has been a slight lift in sentiment, households remain attentive to cost pressures and employment risks. The decline in one-year inflation expectations suggests some easing in immediate price concerns, even as longer-term expectations moved marginally higher.
The data provide a snapshot of household perceptions in early February: modestly improved confidence alongside persistent worry about the impact of high prices on personal finances and the chance of job loss. The mixed signals in inflation expectations - down in the near term but up over a five-year horizon - reflect differing views on how price trends will evolve.
Overall, the report portrays a consumer base that is cautiously optimistic relative to recent months but still constrained by substantial uncertainty about costs and labor market stability.
Methodological note: The figures reported here come from the University of Michigan's Surveys of Consumers for early February and reference the index levels and inflation expectations as reported in the survey results.