U.S. consumer sentiment rises to six-month high

The University of Michigan's Consumer Sentiment Index rose to 57.3 in February, the highest since last August, while worries about job security and higher prices remained widespread.

U.S. consumer sentiment rose in February, the University of Michigan reported. The Consumer Sentiment Index increased to 57.3 from 56.4, the highest reading since last August. The survey said the improvement was driven mainly by consumers with the largest stock portfolios, a pattern described as a K-shaped economy. Officials also noted persistent concerns about job loss risk and higher prices linked in part to import-related tariffs. Key points: - The University of Michigan's Consumer Sentiment Index was 57.3 in February, up from 56.4 in January. - Gains were concentrated among households with the largest stock portfolios, while sentiment remained low for consumers without stock holdings. - One-year inflation expectations fell to 3.5%, while five-year expectations rose slightly to 3.4%. - Government data cited in the report showed job openings at a more than five-year low, about 0.87 openings per unemployed person. Summary: The report indicates a modest improvement in overall sentiment but makes clear that concerns over the labour market and higher prices persist. It highlights a split between wealthier households and others. The Federal Reserve's March policy decision will be influenced by upcoming January and February employment reports.