University of Michigan Consumer Confidence Survey Plummets to Lowest Level Since January 1992

The preliminary February U of Michigan consumer confidence survey tumbled 8.8 points to 69.6, a 16 year low. Consensus expectations had been for a drop to 76 from 78.4 in January. To put this level in perspective, the survey previously hit lows of 63.9 in 1990, and 51.7 in 1980, during the two worst recessions of the last thirty years. Current conditions fell to 85.4 from 94.4, and the outlook fell to 59.4 from 68.1. Inflation expectations deteriorated significantly. The one year outlook soared to 3.7% from 3.4%, where it has been for the past three months, while the five year outlook held steady at 3%. This was clearly a horrible number, and indicates that U.S. consumers are not feeling optimistic on the economy.