US consumer sentiment in February remains at lowest in decade

By Ovunc Kutlu

ANKARA (AA) – US consumer sentiment in February remained at its lowest level in the past decade, a University of Michigan survey revealed on Friday.

The index of consumer sentiment declined 4.4 points to 62.8 in February, from 67.2 in January, according to final results from a survey compiled from around 500 consumers.

The index of current economic conditions decreased 3.8 points to 68.2 in February, down from 72.0 in January.

The index of consumer expectations also declined 4.7 points to 59.4, from 64.1, during that period.

"The February descent resulted from inflationary declines in personal finances, a near universal awareness of rising interest rates, falling confidence in the government's economic policies, and the most negative long term prospects for the economy in the past decade," Richard Curtin, chief economist with Surveys of Consumers, said in a statement.

Curtin noted that the survey was conducted prior to the Russian military operation in Ukraine, so its impact is yet to be felt by American consumers.

"The imposition of sanctions against Russia is likely to generate counter measures that could harm the domestic economy, requiring the Fed to give special consideration to any associated economic slowdown and rising unemployment," he said.