Release of the preliminary data for the Consumer Confidence Index and inflation expectations from the University of Michigan.

The University of Michigan has just released the preliminary data for the Consumer Confidence Index and inflation expectations for February, showing negative results that are worse than market forecasts.

According to the data released today, the preliminary reading for the U.S. Consumer Confidence Index recorded about 67.8 points, the lowest level for the index in 6 months, and below market expectations which anticipated a reading of about 71.9 points. The previous reading had stabilized at 73.2 points in January but was revised downward to 71.1 points.

This composite index is measured based on a survey conducted on consumers; the University of Michigan surveys 500 households monthly regarding their financial situations and economic outlooks in the short and long term. It's worth noting that consumer confidence is directly related to increased consumer spending.

On the other hand, the preliminary reading for inflation expectations released by the University of Michigan is 4.3%, which is lower than the previous reading of about 3.3% recorded in January.

This index measures the percentage of consumers who expect changes in the prices of goods and services over the next twelve months. Inflation expectations reflect the actual inflation conditions, as these expectations may be realized. The main reason behind this is the desire of workers for wage increases, leading them to believe that prices will rise.