2/10/2023: Consumer Sentiment is at 13-Month High
The University of Michigan released preliminary Feb 2023 survey results for consumer sentiment earlier today. The sentiment increased from 64.9 in January to 66.4 February, the highest since January 2022. Year-ahead inflation expectations rebounded to 4.2% this month, from 3.9% in January and 4.4% in December. Long-run inflation expectations remained at 2.9% for the third straight month and stayed within the narrow 2.9-3.1% range for 18 of the last 19 months.
I wonder what inflation will be like in the next few months. Stock markets rebounded nicely in January. The unemployment rate is the lowest since 1969 and consumer sentiment is at one year high. With the data we are seeing so far, I will be shocked if the Fed starts to lower rates later this year sans special situations like wars or pandemics. We have not been in an economic environment like this for 14 years. I am super curious to see what will happen in the next couple of years. It’s probably not going to be a walk in the park but I am sure businesses that are built on a solid foundation and have a strong balance sheet will survive and thrive from this high interest rate environment.