US ECON: IBD/TIPP Economic Optimism Index Cools to 52.7

* IBD/TIPP falls one point to 52.7, now lowest since October 2006 (52.4)
* Lower than expectations of 53.0 but above trailing averages
* Declines in all three components in February

The IBD/TIPP Economic Optimism Index fell by one point to 52.7 in February, the lowest reading since October 2006. The decline was larger than expected butthe index remained above both the 6-month and 12-month trailing averages.

The 6-month economic outlook index fell by 1.7 points to 46.4, the lowest since December (45.4). The index on the 6-month personal financial outlook fellby 0.4 point to 60.8, the lowest since October 2006. Ditto for the index on federal policies, off 0.9 point.

Given the close correlation to the University of Michigan index of consumer sentiment, we have lowered our forecast on the latter to 94.0.