Consumer Sentiment

RECENT NEWS
WA Business News  Feb 17  Comment 
Perth's median house price is on the verge of upswing in 2017, as a stabilising labour market and surging commodity prices drive marked improvements in consumer sentiment.
Wall Street Journal  Feb 15  Comment 
Retail sales rose broadly in January, a sign that firming wage gains and solid consumer sentiment could boost overall economic growth in 2017.
Benzinga  Feb 15  Comment 
AUD/USD is trading at 0.7677, up 0.0009. The pair is trading rangebound just under the session highs. The Westpac-Melbourne Institute reported that Australian consumer sentiment for February edged up to 99.6 versus 97.4 in January. Australian...
Forex News  Feb 10  Comment 
The US dollar deflated after the US consumer sentiment monitored by the Reuters/Michigan index was released at a record low missing forecasts by a large margin. The figures reported by the same index also indicated that consumer...
Wall Street Journal  Feb 10  Comment 
A gauge of U.S. consumer sentiment retreated in early February from a decade high hit in January, with expectations for President Donald Trump’s policies affecting confidence along party lines.
newratings.com  Feb 10  Comment 
WASHINGTON (dpa-AFX) - After showing U.S. consumer sentiment at a thirteen-year high in the previous month, the University of Michigan released a report on Friday showing that consumer sentiment has pulled back by more than expected in...
MarketWatch  Feb 10  Comment 
A measure of how optimistic Americans are about the economy, known as consumer sentiment, fell in February just a month after hitting the highest level since 2004. But Democrats and Republicans see the economy in starkly different terms.
Yahoo  Feb 10  Comment 
U.S. consumer sentiment eased off a 13-year high in early February likely as some of the jubilation over Donald Trump's election victory ebbed, but it remained strong enough to suggest that consumers will continue to drive the economy. The jump 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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