If you were looking for a brief respite from the winter blahs, don't look to this month's index of consumer sentiment from the University of Michigan. Here's the sorry story, from Bloomberg:
The University of Michigan's index of consumer sentiment fell for a second straight month to 94.2 in February from January's 95.5. The report showed a rise in inflation expectations, and a measure of Americans' outlook dropped to the lowest since May...
The University of Michigan's index fell as lower-than- forecast job growth and the debate over changes to the Social Security retirement program eroded sentiment. The expectations index, based on optimism about the next 1-5 years, fell to 83.4, the lowest since May, from 85.7.
The declines follow a drop in leading indicators reported yesterday by the Conference Board, adding to evidence that the economy is cooling. Concern about the cost of President George W. Bush's plan to overhaul Social Security and the slow pace of job growth and falling share prices in January is weighing on consumer sentiment, economists including Lynn Reaser said.
None of that is the greatest news, but given today's PPI report, I really wish I hadn't seen that bit about inflation expectations.