US consumer sentiment improves modestly in February

U.S. consumer sentiment improved marginally in early February amid lingering worries about the labor market and the rising cost of living, a survey showed on Friday.

The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index increased to 57.3 this month from a final reading of 56.4 in January. Economists polled by Reuters had forecast the index easing to 55.0.

"While sentiment is currently the highest since August 2025, recent monthly increases have been small, and the overall level of sentiment remains very low from a historical perspective," said Joanne Hsu, the director of the Surveys of Consumers. "Concerns about the erosion of personal finances from high prices and elevated risk of job loss continue to be widespread."  

The survey's measure of consumer expectations for inflation over the next year fell to 3.5% this month from 4.0% in January. Consumers' expectations for inflation over the next five years rose to 3.4% from 3.3% last month.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama )