Consumer Sentiment

The Economic Times  Nov 25  Comment 
Cash and currency in circulation in the system, computed using data on cash withdrawals and money held in banks’ rose by a record Rs 66,070cr.
Wall Street Journal  Nov 25  Comment 
U.S. consumer confidence slipped at the end of November, suggesting retailers could face a challenging holiday season.
SeekingAlpha  Nov 25  Comment  Nov 25  Comment 
PARIS (dpa-AFX) - The French market was trading firmly above the flat line on Wednesday, after geopolitical worries eased, following statements from U.S. President Barack Obama and the NATO, urging Russia and Turkey to de-escalate tensions. On a...
Mondo Visione  Nov 25  Comment 
Consumer confidence in China regained some ground in November following October’s plunge. Consumers were increasingly optimistic about the outlook for long-term business conditions and confidence in the labour market edged higher.   The...  Nov 24  Comment 
PRAG (dpa-AFX) - Czech economic confidence improved to a 4-month high in November and consumer sentiment reached an 8-month high, survey results from the Czech Statistical Office showed Tuesday. The economic confidence index rose to 11.1 in...
Wall Street Journal  Nov 13  Comment 
U.S. consumer confidence rose for the second straight month in November, offering hope for retailers as they head into the holiday season.
SeekingAlpha  Nov 13  Comment 
Mondo Visione  Nov 9  Comment 
Confidence among Russian consumers fell further into negative territory in October as concerns about the outlook for business intensified and as expectations for the job market sank to a new record low. The MNI Russia Consumer Sentiment...


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


  1. ForexForum: Forex Glossary
  2. Iacono Research
  3. Investopedia: Michigan Consumer Sentiment Index
  4. Econoday: 2010 Economic Calendar

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