University of Michigan consumer survey Friday found consumer sentiment fell about 5% on fears inflation will rise to 4.3% under Trump administration tariffs with major U.S. trading partners.

Image by PublicDomainPictures from Pixabay February 7, 2025 - On Friday, the University of Michigan posted the Preliminary Results of Consumer Sentiment for February 2025. Surveys of Consumers Director Joanne Hsu:

Consumer sentiment continued to fall in February as worries over inflation and the possibility of higher prices to come from President Donald Trump ’s tariffs policy appeared to drive the University of Michigan’s monthly sentiment index down.

Consumers grew dramatically more worried about near-term inflation as President Donald Trump pushed aggressive tariffs against major U.S. trading partners, a closely watched survey showed Friday.

Consumer sentiment fell for the second straight month, dropping about 5% to reach its lowest reading since July 2024. Read more here.

U.S. consumer sentiment dropped unexpectedly in February to a seven-month low and inflation expectations rocketed as households feared it may be too late to avoid the negative effects on their purchasing power from President Donald Trump’s threatened tariffs.