US consumer sentiment was little changed in February while one-year inflation expectations ticked up, a survey showed on Friday (Feb 16).

The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 79.6 this month, compared with 79.0 in January. Economists polled by Reuters had forecast a preliminary reading of 80.0.

“The fact that sentiment lost no ground this month suggests that consumers continue to feel more assured about the economy, confirming the considerable improvements in December and January across various aspects of the economy,” said Surveys of Consumers Director Joanne Hsu in a statement. “Consumers continued to express confidence that the slowdown in inflation and strength in labour markets would continue.”

The survey’s reading of one-year inflation expectations edged up to 3.0 per cent this month from 2.9 per cent in January. Near-term inflation expectations are within the 2.3 per cent-3.0 per cent range seen in the two years prior to the COVID-19 pandemic.

The survey’s five-year inflation outlook was unchanged at 2.9 per cent for the third straight month. REUTERS