The University of Michigan consumer sentiment index rose to 79.9 in the final February reading, from 79.2 in the preliminary reading. The increase was unexpected, with analysts tipping a fall to 79.0. However, it still came in significantly under the January reading of 82.4. Analysts are watching indices of consumer confidence for clues on whether consumer spending, which supports about two-thirds of the US economy, will hold up. So far spending has hung in, despite the slide in confidence.
The current conditions index, which tracks consumers' views about their present financial situation, fell to 95.4 in February from 97.2 in January. It was 95.3 at mid-month. The expectations index, which measures attitudes about the 12 months ahead, sank to 69.9 from 72.8, but was higher than the 68.8 registered in its preliminary February reading. The University of Michigan consumer sentiment survey is based on telephone interviews with roughly 500 Americans across the country on personal finances and business and buying conditions. ///www.fxcentre.com