U.S. consumer sentiment unexpectedly declined to a seven-month low in February, while inflation expectations soared amid concerns over President Donald Trump's threatened tariffs.
The University of Michigan's Consumer Sentiment Index fell to 67.8 from January's revised 71.1, well below the consensus estimate of 71.1 among economists surveyed by Reuters.
Inflation expectations surged to 4.3% over the next year, the highest since November 2018, up from 3.3% in January. For the next five years, inflation expectations climbed to 3.3%, the highest since June 2008, up from 3.2% in January.