Last Update: 27-Feb-15 10:11 ET
- The University of Michigan Consumer Sentiment Index was revised up to 95.4 in the final February reading from 93.6 in the preliminary report. The Briefing.com Consensus expected the index to be revised up to 94.0.
- Even after the revisions, the Consumer Sentiment Index is still down from 98.1 in January.
- The overall move in February mirrors the results in the Conference Board's Consumer Confidence Index, which declined to 96.4 in February from 103.8 in January.
- Relatively low gas prices, historically high equity market, and improvements in labor market conditions - which all normally positively impact consumer sentiment - were not enough to dissuade an overall negative feel about the economy this month.
- Fortunately, consumption growth does not rely on sentiment indicators. As long as income trends higher, consumption growth should follow regardless of how sentiment performs.
- Consumer sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.