Consumer Sentiment Bounces in Early February, But Remains Low

Source: Economics Group of Wells Fargo Bank, N.A.Summary Consumer sentiment bounced in early February, but at 66.4 remains consistent with a historically low level of optimism. A still-tight labor market and slowing inflation are boosting current optimism, though short-term inflation expectations rose and signal inflation remains too hot for consumers. Consumers Not Yet Feeling Meaningful Reprieve from Inflation Consumer sentiment has bounced off lows in recent months, but at 66.4 sentiment remains near a historically weak level (chart). We expect the still-tight labor market helped bolster confidence in early February, as did slower inflation. But while consumers have started to feel some of the effects of slower inflation, particularly at the gas pump, consumer food prices were still up at an annual rate of 10.4% through December according to the latest data, demonstrating price relief is not yet widespread across frequent consumer purchases. READ FULL ARTICLE>>