Consumer Sentiment

RECENT NEWS
newratings.com  Jul 23  Comment 
COPENHAGEN (dpa-AFX) - Denmark's consumer confidence rose for the fifth month in a row in July as economic expectations continued to improve, a report from Statistics Denmark showed Wednesday. The headline consumer confidence index rose to...
newratings.com  Jul 23  Comment 
BRUSSELS (dpa-AFX) - The minutes of the Bank of England's July monetary policy announcement, eurozone consumer sentiment report and French business confidence figures are among the economic data scheduled for release on Wednesday. At 4:30 am...
Canada.com  Jul 22  Comment 
Fresh is better than packaged or fake. It's a broadening consumer sentiment underlying tepid sales at Coca-Cola and Campbell Soup Co. that has sent packaged goods makers scrambling in recent years
SeekingAlpha  Jul 19  Comment 
While the media focuses on the meaningless short term squiggles in consumer confidence indicators, I like to look at the long term trend. I like it because US consumers in the aggregate are far better forecasters of markets and the US economy than...
newratings.com  Jul 18  Comment 
WASHINGTON (dpa-AFX) - Gold futures snapped a two-day gain to end lower Friday, on profit taking after yesterdays significant spike tracking declining global equity markets and brewing tensions over the Malaysian Airlines passenger plane crash in...
MarketWatch  Jul 18  Comment 
Consumer sentiment fell to a preliminary July reading of 81.3, hitting a four-month low, from a final June level of 82.5, according to a Friday media report on the gauge from the University of Michigan and Thomson Reuters. Economists polled by...
Reuters  Jul 18  Comment 
U.S. consumer sentiment dipped in early July while an index of consumer expectations weakened for a third straight month, a survey released on Friday showed.
Clusterstock  Jul 18  Comment 
The University of Michigan's preliminary read on consumer sentiment in July was a bit disappointing. The headline index slipped to 81.3 from 82.5 in June. Economists estimated the headline index would climb to 83.0. The economic conditions...
SeekingAlpha  Jul 9  Comment 
By Dean Popplewell: By Kenny Fisher AUD/USD is stable on Wednesday, as the pair trades at the 0.94 line in the North American session. Australian Consumer Confidence looked sharp, jumping to an eight-month high. In the U.S., all eyes are on...
FX Street  Jul 9  Comment 
A measure of Australian consumer sentiment improved modestly in July as worries about family... For more information, read our latest forex news and reports.
The Australian  Jul 9  Comment 




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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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