The Index of Consumer Sentiment declined -4.6% MoM to 67.8, a surprise below expectations of a 71.1 reading and the lowest since July 2024.

• The Current Economic Conditions index fell -7.2% MoM, and the Index of Consumer Expectations fell -2.9% MoM.
• The decrease was pervasive, with Republicans, Independents, and Democrats all posting sentiment declines from January, along with consumers across age and wealth groups.
• Expectations for personal finances sank about 6% from last month, again seen across all political affiliations, reaching its lowest value since October 2023. Many consumers appear worried that high inflation will return within the next year.

Year-ahead inflation expectations jumped up from 3.3% in January to 4.3% in February, the highest reading since November 2023 and the 2nd straight unusually high increase.

• 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.
• Long-run inflation expectations ticked up from 3.2% last month to 3.3% this month. Long-run inflation expectations remain elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic.