Consumer Sentiment

RECENT NEWS
newratings.com  7 hrs ago  Comment 
STOCKHOLM (dpa-AFX) - Sweden's economic confidence weakened in June as consumers were somewhat more negative than normal, survey data from the National Institute of Economic Research showed Wednesday. The economic tendency indicator fell to...
newratings.com  Jun 12  Comment 
WASHINGTON (dpa-AFX) - The dollar is little changed Friday afternoon, as the trading week draws to a close. The preliminary read on consumer sentiment for June came in stronger than expected this morning and producer prices increased a bit more...
Yahoo  Jun 12  Comment 
The University of Michigan's preliminary June reading on the overall index on consumer sentiment came in at 94.6, up from the final reading of 90.7 the month before. The survey's gauge of consumer expectations rose to 86.8 from the final May...
The Economic Times  Jun 10  Comment 
Consumer sentiment fell more than expected in June, a blow to hopes for a pick-up in household spending after two rate cuts.
Financial Times  Jun 9  Comment 
Improved consumer sentiment and spending rise propels central European country
Mondo Visione  Jun 9  Comment 
The MNI Russia Consumer Sentiment Indicator remained broadly stable at 72.8 in May compared with 73.0 in April. Though consumer sentiment was down 17.7% on the year, our survey provides a tentative sign that we have reached a trough in confidence...
Mondo Visione  Jun 2  Comment 
The MNI India Consumer Sentiment Indicator fell by 2% to 119.6 in May from 122.1 in April as sentiment across all components declined, led by a fall in Durable Buying Conditions.   It’s now one year since Prime Minister Narendra Modi was...
Wall Street Journal  May 29  Comment 
Consumers remain cautious about the current economy this month, according to new report on consumer sentiment. The report raises worries about consumer spending in the second quarter following weak demand in the first quarter.
newratings.com  May 29  Comment 
WASHINGTON (dpa-AFX) - Consumer sentiment in the U.S. deteriorated less than previously estimated in the month of May, according to a report released by the University of Michigan on Friday. The report showed that the consumer sentiment index for...




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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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