Consumer Sentiment

RECENT NEWS
MarketWatch  Jul 17  Comment 
Consumers’ attitudes soured in July, with a gauge of their sentiment pulling back from June’s five-month high.
MarketWatch  Jul 17  Comment 
Consumer sentiment fell to a preliminary July reading of 93.3 from a final June level of 96.1, according to reports on the University of Michigan gauge released Friday. Economists polled by MarketWatch had expected a July figure of 95. Economists...
SeekingAlpha  Jul 17  Comment 
Clusterstock  Jul 17  Comment 
Consumer sentiment fell more than expected, reflecting worries about what's happening internationally. The preliminary reading of consumer sentiment for July from the University of Michigan came in at 93.3. Economists had estimated a reading...
The Australian  Jul 15  Comment 
Fragile consumer confidence is undermining attempts to reinvigorate the Australian economy.
Mondo Visione  Jul 9  Comment 
Russia consumer sentiment increased sharply in June, moving further above the March low and providing more evidence that confidence may have troughed.   The MNI Russia Consumer Sentiment Indicator rose 4.9% on the month to 76.4 in June from...
newratings.com  Jul 2  Comment 
WASHINGTON (dpa-AFX) - After reporting a substantial improvement in U.S. consumer sentiment in the previous month, the University of Michigan released a report on Friday showing that consumer sentiment pulled back in the month of July. The report...
Mondo Visione  Jul 2  Comment 
The MNI India Consumer Sentiment Indicator remained stable at 119.5 in June compared with 119.6 in the previous month, with the Reserve Bank of India’s latest rate cut failing to provide a boost to consumer confidence.   Consumer confidence...
guardian.co.uk  Jun 29  Comment 
Post-election poll of consumer sentiment, showing dramatic uptick in confidence, provides encouraging news for retailers Consumers are feeling more buoyant than they have since the early 2000s, according to a measure of confidence that jumped by...




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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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