US consumer sentiment slumped in early February to a seven-month low on a spike in short-term inflation expectations related to concerns about tariffs.

The preliminary February sentiment index slid 3.3 points to 67.8, according to the University of Michigan. The latest reading trailed all forecasts of economists surveyed by Bloomberg.

Consumers expect prices to rise at an annual rate of 4.3% over the next year, up a full percentage point from the prior month, the data released Friday showed. And they saw costs rising at an annual rate of 3.3% over the next five to 10 years, up slightly from the previous month.

There is a lot of uncertainty around the inflation outlook as President Donald Trump pushes forward with tariffs. If all the levies on the top US trading partners go into effect and cause prices to rise, that would likely weigh on consumer spending.

The survey showed a 12 percentage-point decline in buying conditions for big-ticket items from a month earlier. In addition, the decline in overall sentiment occurred across all political affiliations.

“Republicans appear to be moderating somewhat from their immediate surge in confidence following the election, while Democrats continue to worry about the implications of Trump’s economic policies,” Joanne Hsu, director of the survey, said in a statement.

Sentiment among Republicans declined for the first time since August 2024, and it continued to deteriorate for Democrats to the lowest since 2020. Confidence also dropped among political independents.

Moreover, it is taking more time for unemployed Americans to find a job. Separate figures Friday showed employment growth moderated in January 2025 after annual revisions from the government revealed less vigor in the labor market last year than previously thought.

The current conditions gauge decreased to a three-month low of 68.7 from 74, while the expectations index dropped to 67.3 — the weakest since November 2023.

Consumers’ expectations for their financial situation retreated in February to the lowest level since October 2023. A measure of the year-ahead outlook for the economy also fell.