US: UoM Consumer Confidence Index drops to 93.8 (final) from 95.5 previously

The University of Michigan on Friday reported that the Index of Consumer Sentiment in February rose to 93.8 in February from 91.2 recorded in January but eased from the previous estimate of 95.5 and fell short of the market expectation of 95.7

Key takeaways from the press release

• Although sentiment was still above last month's low, the bounce-back from the end of the Federal shutdown faded in late February.
• Consumers continued to react to the Fed's pause in raising interest rates, balancing the favorable impact on borrowing costs against the negative message that the economy at present could not withstand another rate hike.
• The data indicate that personal consumption expenditures will grow by 2.6% in 2019 and the strength in consumer spending will mean that the expansion is expected to set a new record length by mid year.

February (final) results

• Index of Consumer Sentiment at 93.8 vs 91.2 in January.
• Index of Current Economic Conditions at 108.5 vs 108.8 in January.
• Index of Consumer Expectations at 84.4 vs 79.9 in January.