U.S. consumer sentiment remained essentially flat in February 2026, reflecting ongoing frustration with high prices and economic uncertainty. The University of Michigan’s final Consumer Sentiment Index for the month rose slightly to 56.6, up just 0.2 points from January’s 56.4. While this marks a small improvement and the highest level since August 2025, the reading is still well below last February’s 64.7 and far from the long-term historical average of around 85. Economists describe the index as “treading water,” with no significant upward or downward movement.
The survey, conducted by the University of Michigan’s Institute for Social Research, polls a nationally representative sample of households each month to gauge views on personal finances, business conditions, and the overall economy. Director and chief economist Joanne Hsu noted that consumers see little material change in economic conditions compared to the previous month. All major components of the index—current economic conditions and future expectations—showed only minor shifts.
High prices continue to weigh heavily on Americans’ minds. About 46% of respondents spontaneously mentioned rising costs as a drag on their personal finances, a level that has stayed above 40% for seven straight months. This concern affects people across income levels, though it hits lower- and middle-income households hardest. Even among the wealthiest consumers, around one-third cited prices as an issue, showing that inflation remains a broad worry even if it feels less painful for those with more resources.
A key theme in the February data is the growing divide between economic “haves” and “have-nots,” often called a K-shaped economy. In this pattern, wealthier groups recover or thrive while lower-income groups struggle or fall further behind. Hsu highlighted stark differences in sentiment:
- Consumers with the largest stock portfolios saw a notable increase in confidence, boosted by strong stock market performance.
- This gain was completely offset by a decline among those who own no stocks, leaving the overall index unchanged.
As a result, sentiment among the wealthiest consumers is now more than 30% higher than among non-stockholders. Wealthier and college-educated individuals also report stronger expectations for their income and finances, feeling more insulated from economic risks. In contrast, lower-income and less-educated groups show little improvement.
Bank of America Institute Senior Economist David Tinsley described the K-shaped trend as widening, particularly impacting the middle class. He noted that while the economy was once driven by both higher- and middle-income households, it now relies more heavily on the top earners. This shift creates a more fragile economic picture.
The labor market adds to the unease. Views remain cooler than a year ago, with 23% of consumers mentioning lower incomes as a financial burden—the second-highest reading since 2021. Over half (58%) expect unemployment to rise in the coming year, though this is a slight improvement from January. Expected household income growth has stayed relatively flat.
Policy factors like tariffs also influence sentiment. Over 40% of respondents mentioned tariffs unprompted, linking them to higher prices and uncertainty. The survey period overlapped with a major Supreme Court decision on February 20, 2026, which struck down President Trump’s authority to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). Hsu expressed interest in how future responses might change now that some policy uncertainty has been resolved, as the ruling could ease fears of further price increases from broad tariffs.
Overall, the data paints a picture of an economy where gains for some—driven by stock market strength and better income prospects—mask persistent struggles for many others. High prices and labor market concerns continue to dominate, keeping consumer sentiment historically low and underscoring the uneven nature of the current recovery. As Hsu and others observe, these divides highlight how economic experiences vary sharply across households, with wealthier Americans feeling more secure amid ongoing challenges.
