A report from the University of Michigan revealed on Friday the preliminary reading for the Reuters/Michigan index of consumer sentiment decreased 3.5 percent m-o-m to 76.2 in early February. This was the lowest reading since August 2020.

Economists had expected the index would increase to 80.8 this month from January’s final reading of 79.0.

According to the report, the index of current U.S. economic conditions decreased 0.6 percent m-o-m to 86.2 in February from 86.7 in the previous month. Meanwhile, the index of consumer expectations plunged 5.7 percent m-o-m to 69.8 this month from 74.0 in January.

“Consumer sentiment edged downward in early February, with the entire loss concentrated in the Expectation Index and among households with incomes below $75,000,” noted Surveys of Consumers chief economist, Richard Curtin. “More surprising was the finding that consumers, despite the expected passage of a massive stimulus bill, viewed prospects for the national economy less favorably in early February than last month,” he added.