Consumer Sentiment

Benzinga  Sep 14  Comment 
AUD/USD is trading at 0.7472, up 0.0007. The pair is trading rangebound early Wednesday morning after Tuesday's decline. The Westpac-Melbourne Institute reported that Australian Consumer Sentiment for September edged up to 101.4 versus 101 in...  Sep 2  Comment 
TOKYO (dpa-AFX) - Japan consumer sentiment strengthened more than expected in August, survey data from the Cabinet Office showed Friday. The consumer sentiment index rose to 42.0 from 41.3 in the prior month. The score was expected to improve to...
MarketWatch  Aug 31  Comment 
Consumer sentiment saw some recovery in August after suffering its steepest fall in more than two decades in the immediate wake of Britain’s decision to leave the European Union, GfK finds.  Aug 31  Comment 
BRUSSELS (dpa-AFX) - Swiss private consumption increased in July, mainly driven by car sales, survey data from the UBS bank showed Wednesday. The UBS Consumption Indicator rose to 1.32 from a revised 1.21 in June. The disappointing June figures...
Mondo Visione  Aug 31  Comment 
Chinese consumer sentiment edged down in August in a broad based deterioration which saw declining optimism toward personal finances, business conditions and the job market. On a more optimistic note, consumers reported a slight improvement in...
Forbes  Aug 30  Comment 
Prosper’s Consumer Spending Forecast is up from last month and so is consumer confidence (albeit still below the 13-month average), but small business owners’ sentiment is down.
Wall Street Journal  Aug 26  Comment 
A gauge of consumer sentiment edged lower in August, a potentially worrying sign for an economy heavily reliant on personal spending for growth.
MarketWatch  Aug 26  Comment 
The closely-watched University of Michigan consumer sentiment reading showed households less confident about their personal situations but more bullish on the economy, while evenly split on which presidential candidate would do best.  Aug 24  Comment 
WASHINGTON (dpa-AFX) - The dollar is turning in a mixed performance Wednesday afternoon, but is little changed overall. Today was another light day in terms of economic data, but several important reports are due to be released in the next 2 days....
Financial Times  Aug 12  Comment 
Outlook for consumer sentiment firm despite dip in July data


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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