The University of Michigan Consumer Sentiment Index was 56.6 in Feb 2026 (+0.4% MoM; -12.5% YoY), essentially unchanged from the prior month but below the preliminary February reading of 57.3.

• Current Economic Conditions Index rose to 56.6 (+2.2% MoM; -13.9% YoY), showing modest improvement in present assessments despite weaker YoY readings.

• Index of Consumer Expectations fell to 56.6 (-0.7% MoM; -11.6% YoY), indicating slightly softer forward views relative to January.

• About 46% of consumers cited high prices harming finances, extending a seven-month stretch above 40%, suggesting persistent price pressures in perceptions.

• Sentiment divergence widened as higher-income, college-educated, and stock-owning households improved while lower-income and non-stockholders declined, leaving aggregate sentiment flat.

• Year-ahead inflation expectations declined to 3.4% (vs 3.5% preliminary reading) from 4.0%), the lowest since Jan 2025 but still above the pre-pandemic 2.3% to 3.0% range.

• Long-run inflation expectations were steady at 3.3% (vs 3.4% preliminary reading), slightly above the 2024 range of 2.8% to 3.2% and above sub-2.8% levels in 2019 to 2020.

• Inflation uncertainty fell to its lowest since Dec 2024 (short run) and Oct 2024 (long run), indicating narrowing dispersion in expectations.