Consumer Sentiment Virtually Unchanged, Year-Ahead Inflation Outlook Hits 13-Month Low

01:58 PM EST, 02/20/2026 (MT Newswires) -- US consumer sentiment held largely steady this month, with high prices still a widespread concern even as year-ahead inflation expectations hit a 13-month low, final University of Michigan survey results showed Friday.

The main sentiment index ticked up to 56.6 in February -- the highest since August -- from 56.4 last month. The consensus was for the index to remain unchanged at the initial reading of 57.3 in a Bloomberg-compiled survey.

"Consumer sentiment stagnated this month with very little change," Surveys of Consumers Director Joanne Hsu said in a statement. "About 46% of consumers spontaneously mentioned high prices eroding their personal finances; readings have exceeded 40% for seven months in a row."

Year-ahead inflation expectations declined to 3.4% in February from 4% last month, the lowest since January last year, according to Hsu. The five-year inflation outlook was steady at 3.3%.

Earlier this week, minutes from the Fed's policy meeting last month showed that central bank officials were divided over the projected path of interest rates as the focus shifted to concerns about elevated inflation from labor market weakness.

US consumer spending growth unexpectedly held steady in December, while the Federal Reserve's preferred inflation metric accelerated more than Wall Street's estimates to 3% year over year, government data showed Friday.

The gauge for current economic conditions edged up to a four-month high of 56.6 in February from 55.4 in January, University of Michigan data showed. That's below the Street's view for 58.

The expectations measure slipped to 56.6 from 57, in line with projections.

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