Consumer Sentiment

Mondo Visione  Sep 30  Comment 
In contrast to the global barrage of negativity surrounding China’s economic fortunes, ordinary Chinese consumers have become increasingly upbeat. Following a minor setback early in Q2, consumer confidence has been steadily improving since...  Sep 25  Comment 
WASHINGTON (dpa-AFX) - U.S. consumer sentiment fell in September compared to the previous month, according to a survey released Friday The University of Michigan's final September reading on the overall index on consumer sentiment came in at...
MarketWatch  Sep 25  Comment 
The final read of consumer sentiment was revised higher to 87.2 from a preliminary tally of 85.7, according to the latest University of Michigan reading. This was down from the August final reading of 91.9. Economists surveyed by MarketWatch had...
SeekingAlpha  Sep 25  Comment  Sep 24  Comment 
BERLIN (dpa-AFX) - Germany's consumer confidence is likely to weaken in October, survey data from market research group GfK showed Thursday. The forward-looking consumer sentiment index dropped to 9.6 in October from 9.9 in September. It...
Wall Street Journal  Sep 24  Comment 
New York Times  Sep 11  Comment 
An index of consumer sentiment fell to its lowest level in a year, and the government’s Producer Price Index was unchanged in August.  Sep 11  Comment 
WASHINGTON (dpa-AFX) - The dollar is down against the Euro at the end of the trading week, but is little changed against the rest of its major competitors. The buck is down slightly against the Japanese Yen and is modestly higher against the...
MarketWatch  Sep 11  Comment 
Consumer sentiment in September dove, according to the latest University of Michigan reading. The index fell to 85.7 from 91.9 in August, well below the MarketWatch-compiled consensus reading of 90.3. That's the lowest level since September...
Yahoo  Sep 11  Comment 
Consumer sentiment declined in September to the lowest level in year as Americans anticipated a weaker economy in face of a global slowdown and turbulent financial markets. Stock market jitters may be shaking some Americans’ confidence in the...
Yahoo  Sep 11  Comment 
U.S. consumer sentiment hit its lowest in a year in early September and producer prices were flat in August, signaling moderate economic growth and tame inflation that could weigh on the Federal Reserve's decision whether to hike interest rates...


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


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

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