US consumer sentiment increased in February but fell short of expectations as optimism among wealthier Americans was offset by declining confidence among those who haven't benefited from stock-market gains. The University of Michigan's preliminary sentiment index rose to 71.8 from January's 71.0, according to a survey released Friday. Economists had forecast a reading of 72.0.

This mixed reading reflects the diverging economic experiences across income groups during the current economic cycle. While stock market gains have boosted wealth for affluent households, many Americans have faced persistent inflation and slower wage growth. The sentiment gap between high-income and low-income consumers has widened, creating challenges for businesses trying to gauge consumer spending patterns.

The weaker-than-expected reading suggests consumer confidence remains fragile despite recent economic resilience. This could impact retail sales and broader economic growth Businesses may need to adjust strategies as they navigate between strong spending from affluent consumers and more cautious behavior from middle and lower-income households.