Bad weather didn’t stifle consumer sentiment in February, survey finds
Although cold weather kept many shoppers indoors last month, consumer sentiment indexes continued their slow but steady rise, offering optimistic news for the retail industry. The Thomson Reuters/University of Michigan final index of consumer sentiment increased to 81.6 in February, up from 81.2 in January. The February result was slightly above analysts' predictions.
"While the harsh winter weather has kept consumers away from retail outlets, it has not had a detrimental impact on their outlook for future economic conditions," said Richard Curtin, chief economist for the consumer sentiment survey. "Consumers have displayed remarkable resiliency in the face of the polar vortex as well as higher utility bills and minimal employment gains."
Money News mentioned that shoppers' growing optimism comes from their expectations to have higher incomes over the next year, giving them more disposable income – even if they wait for the weather to warm up before hitting stores.
"Consumer spending will continue on the same pace and grow modestly throughout the year," predicted Yelena Shulyatyeva, U.S. economist at BNP Paribas in New York, according to Bloomberg.
The economy still has a long way to go on its recovery, but these numbers offer hope that retail customer trends will continue to move in a positive direction.
