US consumer sentiment holds steady in FebruaryFriday 14 February 2014 16.55
US consumer sentiment was unchanged in early February as Americans' optimism about their future prospects was tempered by concern over their current finances, a survey today showed.
The preliminary reading of the Thomson Reuters/University of Michigan overall index of consumer sentiment stood at 81.2, unchanged from the final reading in January.
Analysts polled by Reuters expected a February reading of 80.6.
The survey's barometer of current economic conditions slipped to 94 from 96.8 in January, below economists' forecast of 95.9.
But the consumer expectations gauge rose to a six-month high of 73 from 71.2, comfortably beating a 71.6 forecast.
"The good news is that confidence proved resilient to recent government reports of weak growth in income and employment," survey director Richard Curtin wrote in a statement.
"The not-so-good news is that the full impact on household budgets from the harsh winter has yet to be registered," he added.
Curtin said the arrival of higher-than-usual heating bills in the months ahead could squeeze consumer budgets further, "especially among lower income households."
Economists suspect extreme cold and heavy snowfall in the Midwestern and eastern US this winter have suppressed hiring and consumer spending, making it harder to gauge the underlying strength of the economy.
The survey's one-year inflation expectation rose to 3.3%, a five-month high, compared to 3.1% in January. The five-to-10-year inflation outlook held steady at 2.9%.
Meanwhile, US industrial output fell 0.3% in January in a surprise downturn, partly due to severe weather in parts of the country last month, the Federal Reserve said today.
The Fed's industrial production index fell to 101, the same level as November, with a 1% drop in construction activity leading a downturn in all major market groups.
Among industry groups, utilities were the only gainer, due to a rise in heating demand in many areas hit by major winter storms.
The Fed also cut its previous estimate of manufacturing growth during the fourth quarter of 2013. It said manufacturing expanded at a 4.6% annual rate, instead of the previously estimated 6.2%.
The January index level for industrial output was 2.9% above a year earlier. Industrial capacity utilisation fell to 78.5%, still 1.6 percentage points below the long-run average.