US consumer sentiment has fallen to its lowest level in over a year, while inflation expectations have surged amid uncertainty surrounding President Donald Trump’s tariff plans. The University of Michigan Surveys of Consumers reported that consumer sentiment dropped from 71.7 in January to 64.7 in February, the lowest reading since November 2023.
Inflation expectations rose to 4.3% over the next year, the highest level since November 2023, and are now above the 2.3-3.0% range seen before the pandemic. Households expect inflation to run at 3.5% over the next five years, the highest since 1995.
President Trump’s tariff plans have taken shape during his first month in office, with new tariffs on China, Canada, and Mexico set to take effect soon. This uncertainty has contributed to a sharp increase in consumer concerns about inflation. The Federal Reserve has expressed concerns about higher inflation, which remains above its target of 2%.
Source: https://www.foxbusiness.com/economy/us-consumer-sentiment-plunges-worries-over-prices-from-inflation-tariffs