Confidence Revised Lower From 2-Year High

- The Final Univ. of Mich. Consumer Confidence reading for February fell to 91.3 versus estimates of 93.5 and a prior estimate of 93.3.

BOTTOM LINE: Confidence among US consumers fell last month from a two-year high, Bloomberg reported. The Current Conditions component, which reflects American’s perceptions of their financial situation and whether it’s a good time to buy big-ticket items like cars, decreased to 106.7 versus 111.3 the prior month. A bounce higher in gas prices was the main reason behind the revision lower to confidence. I continue to expect this measure of confidence will join the Conference Board’s gauge and will hit new cycle highs later this year as housing stabilizes at relatively high levels, stocks rise further, interest rates remain low, gas prices fall further, inflation decelerates more and the job market remains healthy.