Consumer Sentiment

RECENT NEWS
newratings.com  Jan 4  Comment 
VIENNA (dpa-AFX) - French shares moved in a narrow range on Wednesday after official data showed French consumer sentiment held steady at its highest level in more than nine years in December. The consumer confidence index came in at 99.0 in...
newratings.com  Jan 4  Comment 
PARIS (dpa-AFX) - French consumer sentiment held steady at its highest level in more than nine years in December, the statistical office Insee reported Wednesday. The consumer confidence index came in at 99.0 in December, the same reading as in...
Mondo Visione  Jan 4  Comment 
Consumer sentiment improved in December, led by a bounce-back in consumers‘ optimism about their expected personal finances which offset a pullback in durable buying conditions. ...
Wall Street Journal  Dec 23  Comment 
Americans are more confident in the economy than at any point in nearly 13 years, according to a closely followed survey that showed high expectations for growth during the new Trump administration.
The Hindu Business Line  Dec 20  Comment 
International tourist inflow too down 40%; cash crunch dampening consumer sentiment
MarketWatch  Dec 9  Comment 
U.S. consumer sentiment improving: U. of Mich.
MarketWatch  Dec 9  Comment 
A closely-watched gauge is one-tenth of a percent from its highest since 2004.




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

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.

Error creating thumbnail
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


Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki