Consumer Sentiment

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The Hindu Business Line  1 hr ago  Comment 
Sterling hit a one-month high against the dollar on Thursday, after UK retail sales data came in much higher than expected, soothing worries about weakening consumer sentiment in Britain as it prepar...
newratings.com  5 hrs ago  Comment 
BRUSSELS (dpa-AFX) - At 3.00 am ET Thursday, Germany's GfK consumer sentiment survey results have been released. The euro changed little against its major rivals after the data. The euro was trading at 1.0799 against the greenback, 120.15...
MarketWatch  Mar 17  Comment 
The University of Michigan was already hard at work today, issuing a U.S. consumer sentiment reading with an upbeat message for the stock market (no surprise, it showed that Democrats are suspicious the economy will live up to President Trump’s...
MarketWatch  Mar 17  Comment 
U.S. consumer sentiment running high — except among Democrats
newratings.com  Mar 17  Comment 
BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Early trading indications in U.S. future index suggest that Wall Street will open higher on Friday. Traders are likely to keep an eye on reports on industrial production, consumer sentiment and leading economic...
newratings.com  Mar 7  Comment 
WASHINGTON (dpa-AFX) - After reporting a pullback in U.S. consumer sentiment in the previous month, the University of Michigan released a report on Friday showing that sentiment has rebounded by more than expected in March. The preliminary report...
CNNMoney.com  Feb 24  Comment 
How's the economy doing? The answer may depend on who you voted for.
Wall Street Journal  Feb 24  Comment 
A gauge of consumer sentiment fell slightly in February, but remained near a decadelong high, as self-identified Republicans and Independents remain confident in the economy after the election of Donald Trump.
Yahoo  Feb 24  Comment 
New U.S. single-family home sales rose less than expected in January, likely held back by heavy rains and flooding in California, but continued to point to a strengthening housing market despite higher prices and mortgage rates. Other data on...




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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.

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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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