Consumer Sentiment Index Jumps Sharply

Optimism over tax cuts is easily offsetting concern over the stock market, according to the consumer sentiment index which jumped sharply to 99.9 in preliminary February. Outside of October last year, this is the highest score in 14 years. Strength includes current conditions, at 115.1 and offering an early indication of a rebound for February consumer spending, and also expectations, at 90.2 and pointing to confidence in the income outlook.

Not showing any life are inflation expectations, unchanged at 2.7 percent for the year-ahead outlook and 2.5 percent for the 5-year outlook.

This report has been much flatter than other confidence readings which underlines today's strength as confirmation that the consumer, despite soft spending and gyrations in the stock market, is solidly underpinned by the strong jobs market.

Recent History Of This Indicator:
Consumer sentiment index recovered from a preliminary January slump to end the month at 95.7 and about where it was in December. This report has been flat unlike the consumer confidence index where readings have been much higher. Econoday's consensus for the preliminary February consumer sentiment index is 95.5 in a result that would point to no measurable panic tied to the stock market.