Consumer Sentiment

RECENT NEWS
newratings.com  Nov 25  Comment 
PARIS (dpa-AFX) - French consumer sentiment remained stable in November, the statistical office Insee reported Friday. The consumer confidence index held steady at 98 in November. It has remained below its long-term average of 100....
The Economic Times  Nov 24  Comment 
However, the agency claimed that demonetisation has disrupted consumption which will in turn lead to postponement in investment revival.
The Hindu Business Line  Nov 24  Comment 
Consumer sentiment in India has improved post-demonetisation of ₹500/1,000 notes by the Central Government, according to a survey done by the Centre for Monitoring Indian Economy. Consumer sentiment, ...
newratings.com  Nov 24  Comment 
BERLIN (dpa-AFX) - German consumer confidence is set to rise in December, survey data from market research group GfK showed Thursday. The forward-looking consumer sentiment index rose to 9.8 in December from 9.7 points in November. The score was...
MarketWatch  Nov 24  Comment 
Strong U.S. durable goods orders and consumer sentiment data on Wednesday bolstered already heightened expectations that the Fed will keep tightening monetary policy to prevent the economy from overheating.
The Economic Times  Nov 24  Comment 
The University of Michigan said Wednesday that its final index of sentiment rose to 93.8 from 87.2 in October, after a preliminary reading of 91.6 that reflected pre-election views.
Wall Street Journal  Nov 23  Comment 
A measure of consumer sentiment improved in November, a sign of rising confidence in the economy during the final stretch of a turbulent presidential campaign that culminated in the election of Donald Trump—and its immediate aftermath.
newratings.com  Nov 22  Comment 
WASHINGTON (dpa-AFX) - The dollar is gaining ground against its major rivals Tuesday afternoon. The buck took a bit of a pause from its recent rally during Monday's session. Economic data was on the light side again Tuesday, but investors can...
newratings.com  Nov 18  Comment 
AMSTERDAM (dpa-AFX) - Dutch consumer sentiment remained stable at the highest level seen in more than nine years in November, figures from the Central Bureau of Statistics showed Friday. At the same time, consumer spending grew at the slowest...
newratings.com  Nov 11  Comment 
WASHINGTON (dpa-AFX) - After showing U.S. consumer sentiment at its lowest level in over a year in the previous month, the University of Michigan released a report on Friday showing that consumer sentiment rebounded to a six-month high in...




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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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