Consumer Sentiment

RECENT NEWS
newratings.com  12 hrs ago  Comment 
BERLIN (dpa-AFX) - German consumer sentiment is set to weaken in September for the first time since early 2013 as intensified geopolitical tensions are likely to shift the economy into lower gears. The forward-looking consumer confidence index...
newratings.com  Aug 27  Comment 
newratings.com  Aug 27  Comment 
Forex News  Aug 27  Comment 
The euro touched a new low for the year versus the US dollar today as traders are anticipating additional monetary easing from the European Central Bank. Worsening German consumer sentiment was not helping matters. While the shared...
newratings.com  Aug 27  Comment 
BRUSSELS (dpa-AFX) - German import price figures for July and GfK consumer sentiment for September were released at 2:00 am ET Wednesday. Ahead of the data, the Euro changed little against its major rivals. As of 2:02 am ET,the Euro was trading...
The Australian  Aug 26  Comment 
SENTIMENT improved last week as consumers shrugged off recent poor economic data, including the tick-up in unemployment to a 12-year high.
The Straits Times  Aug 21  Comment 
August 22, 2014 1:09 AM POOR consumer sentiment in Malaysia and Vietnam has weighed down earnings at South-east Asian department store operator Parkson Retail Asia.
New York Times  Aug 15  Comment 
Producer prices barely edged up in July, held back by declining energy prices, while the index on consumer sentiment was the lowest since November.
Clusterstock  Aug 15  Comment 
(Reuters) - U.S. consumer sentiment fell in August to its lowest since last November while a barometer of current economic conditions rose to its highest since July 2007, a survey released on Friday showed. The Thomson Reuters/University of...
WA Business News  Aug 14  Comment 
Profits at James Packer's gaming company Crown have soared, but weak consumer sentiment is hurting trade at its Perth and Melbourne casinos.




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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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