Consumer confidence falls for the first time since Trump's election
- Author: Zachary Reyes Feb 25, 2017,
Feb 25, 2017, 2:26
The school's Consumer Sentiment Index to hit 96.3 in February.
Economists' estimates for the sentiment index ranged from 95 to 98. Wage increases and improvements in the job market have also contributed to the "elevated" levels of confidence, Nice said in an interview.
The "gain represents the result of an unprecedented partisan divergence, with Democrats expecting recession and Republicans expecting robust growth", noted Richard Curtin, chief economist of the MI survey.
The gauge of expectations six months from now dropped to 86.5 from 90.3 in January, and compared with a preliminary February measure of 85.7.
Consumer confidence fell for the first time since November's election, as party lines divided Americans following a boost in enthusiasm for the new administration's economic policies.
"That is not the case since the gain represents the result of an unprecedented partisan divergence, with Democrats expecting recession and Republicans expecting robust growth", Curtin added.
On the inflation front, one-year inflation expectations rose to 2.7 percent in February from 2.6 percent in January, while five-year inflation expectations dipped to 2.5 percent from 2.6 percent. It is up 5% from February 2016. Like the Consumer Confidence Index, which is compiled by the Conference Board, the Sentiment Index measures consumer attitudes toward spending and toward the economy at large.