An electronic News ticker displayed in Times Square Feb. 03 in New York City as U.S. Stock Markets reacted negatively to the Trump administration tariffs. Photo by Peter Foley/UPI | License Photo
Feb. 7 (UPI) — U.S. consumer sentiment declined in February amid concerns over the impacts of Trump administration tariffs with major U.S. trading partners, according to a report released Friday.
The February University of Michigan consumer survey found consumer sentiment fell about 5% on fears inflation will rise to 4.3% under a 1% increase from January inflation.
The university survey found that all five of its consumer index components deteriorated in February “in part due to a perception that it may be too late to avoid the negative impact of tariff policy.”
“This is only the fifth time in 14 years we have seen such a large one-month rise (one percentage point or more) in year-ahead inflation expectations,” University of Michigan Surveys of Consumers Director Joanne Hsu said in a statement.
Hsu said many consumers appear worried about high inflation returning within the next year.
Stocks dropped more than 200 points on the inflation fears news Friday morning as consumers grew more concerned about tariffs causing higher prices.
The survey showed consumer sentiment dropping for the second straight month.
“The decrease was pervasive, with Republicans, Independents, and Democrats all posting sentiment declines from January, along with consumers across age and wealth groups,” the statement added.
The University of Michigan Consumers survey found expectations for personal finances dropped roughly 6% from January.
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