Consumer Sentiment

RECENT NEWS
MarketWatch  Jun 24  Comment 
The survey sank lower than expected, even as views of current conditions picked up
Motley Fool  Jun 10  Comment 
America's most hated company is from a familiar industry.
Wall Street Journal  Jun 10  Comment 
Satisfaction with the current state of the U.S. economy hit an 11-year high in June, but Americans continued to lose confidence in the future.
MarketWatch  Jun 10  Comment 
Consumer sentiment eased slightly in early June as Americans fretted more about future economic prospects.
Mondo Visione  Jun 9  Comment 
Consumer sentiment in Russia declined to a record low level in May, halting three consecutive months of growth.   Sentiment, which has followed a downward path since mid-2013, appeared to have troughed at the turn of the year, but May’s...
newratings.com  Jun 8  Comment 
WASHINGTON (dpa-AFX) - The dollar is trading higher against its major European rivals Friday afternoon, but has turned lower against the Japanese Yen. The bulk of the buck's gains against the Euro and the British pound occurred after the...
newratings.com  Jun 7  Comment 
WASHINGTON (dpa-AFX) - The dollar is down against the Japanese Yen and the British pound Tuesday afternoon, but is basically flat in comparison to the Euro. While there were numerous economic reports from Europe today, data from the U.S. has been...
Mondo Visione  Jun 7  Comment 
Consumer confidence fell in May following two consecutive months of growth, led by less optimistic expectations for future business conditions. The MNI India Consumer Sentiment Indicator fell 1.5% to 111.7 in May from 113.4 in April. Sentiment...
newratings.com  Jun 2  Comment 
TOKYO (dpa-AFX) - Japan's consumer sentiment improved unexpectedly in May, survey results from the Cabinet Office showed Thursday. The consumer confidence index came in at 40.9 in May, up from 40.8 in April. It was forecast to fall to 40.1...




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Consumer sentiment is the measurement of consumers' attitudes towards their financial positions and the present situation as well as expectations of the economic conditions.[1] Similar to consumer confidence, consumer sentiment is directly related to consumer spending. Since consumer spending accounts for almost two-third of U.S GDP, the level of consumer sentiment then becomes a key indicator to gauge the health of the economy.

Consumer Sentiment ‎
Consumer Sentiment [2]

Measures of consumer sentiment

Michigan Consumer Sentiment Index (MCSI)

Consumer sentiment is measured using the Michigan Consumer Sentiment Index (MSCI). The report is released twice a month from data collected from telephone surveys conducted with 500 U.S consumers. The survey is carried out by the University of Michigan and queries in the survey include consumers' financial situation and attitudes about the economy. Approximately 60% of total survey results are released in the preliminary report on the 10th of each month whereas the final report for the prior month is released on the first of the month.[3]

Why is it important?

The pattern in consumer attitudes has the foremost influence on both the stock and bond markets. Consumer sentiment figure impacts the stock market positively when sentiment is up, and negatively when sentiment is down. The industry that is most affected by consumer sentiment is the retail industry, as their profits are directly affected by consumer spending. In 2007, the credit crunch and spiking gasoline prices drove down consumer sentiment to record lows. However, as the index began to increase again in 2008, it helped investors to confirm that the economy is easing out of recession.[4]

See also: Consumer Confidence

References

  1. ForexForum: Forex Glossary
  2. Iacono Research
  3. Investopedia: Michigan Consumer Sentiment Index
  4. Econoday: 2010 Economic Calendar


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