U.S. consumer confidence deteriorated at its sharpest pace in 3-1/2 years in February, with 12-month inflation expectations surging amid worries that tariffs on imports would raise prices for households.
The Conference Board said on Tuesday its consumer confidence index dropped 7 points, the biggest decline since August 2021, to 98.3 this month. Economists polled by Reuters had forecast the index falling but only to 102.5.
The third straight monthly decrease pushed the index to the bottom of the range that has prevailed since 2022. Average 12-month inflation expectations jumped to 6% from 5.2% in February.
"References to inflation and prices in general continue to rank high in write-in responses, but the focus shifted towards other topics," said Stephanie Guichard, senior economist, global indicators at The Conference Board.
"There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current Administration and its policies dominated the responses."
