Consumer confidence falls in February

ANN ARBOR, Mich. — Consumer confidence in February fell for the first time since November’s election, as party lines divided Americans following an increase in enthusiasm for economic policies under President Donald Trump.

The University of Michigan said Friday that its final index of sentiment for February dropped to 96.3 from January’s 98.5, which was the highest since 2004. That compares with the median projection of 96 in a Bloomberg survey and a preliminary reading of 95.7.

Democrats were more positive than Republicans on their current financial situation. But while confidence is still above pre-election levels, the two sides are sharply divided on whether they expect a boom or bust — Republicans’ expectations index was 120.1, while Democrats’ expectations index was just 55.5. Independent voters are leaning more toward optimism; their expectations index of 89.2 boosted the broader gauge, according to the survey.

“We’ve never recorded such a divide in our data,” with some questions going back to the late 1940s, Richard Curtin, director of the consumer survey, said on a conference call. “I can’t imagine confidence going much higher” given that economic-growth forecasts are generally in the “low 2 percent range.”

Economists’ estimates for the overall sentiment index ranged from 95 to 98.

The current conditions index, which measures Americans’ perceptions of their personal finances, rose to 111.5 from 111.3 in the prior month. The preliminary reading was 111.2.