US client sentiment drops as inflation expectations surge

(Reuters) – U.S. client sentiment dropped unexpectedly in February to a seven-month low and inflation expectations rocketed as households feared it might be too late to keep away from the adverse results on their buying energy from President Donald Trump’s threatened tariffs.

The College of Michigan Surveys of Shoppers on Friday stated its Client Sentiment Index dropped to 67.8 from January’s ultimate studying of 71.1, which was additionally the consensus expectation amongst economists polled by Reuters.

In the meantime households noticed inflation over the following yr surging to 4.3% – the very best since November 2023 – from 3.3% final month. Over the following 5 years they noticed inflation operating at 3.3% – the very best since June 2008 – from 3.2% in January.

(Reporting By Dan Burns; Modifying by Andrea Ricci)