Developing: The closely watched gauge of consumer sentiment from Thomson Reuters and the University of Michigan fell to 93.6 in February from a prior reading of to 98.1 in January. The reading came in well below Wall Street expectations for 98.3.
The survey tops off a week of rather terrible economic data, including a related report out of the Commerce Department Thursday showing retail sales fell more than expected in January, with weak U.S. consumer spending indicating slower first quarter growth. American households are not spending whatever increased disposable income they have resulting from the 39.5 percent decline in gasoline prices since June.
Consumer spending, which accounts for roughly two-thirds of all U.S. economic activity, grew at its quickest pace since 2006 in the fourth quarter, but is now the latest indicator of slowdown in U.S. economic growth.
In a survey published Thursday, a whopping 65 percent of Americans say the U.S. is still in a recession. With more disappointing data rolling in, more and more economists are beginning to raise concerns the public may be on to something, as they typically are ahead of the economic cycle.
