The University of Michigan's Consumer Survey Center questions 500 households each month on their financial conditions and attitudes about the economy. Consumer sentiment is directly related to the strength of consumer spending. Consumer confidence and consumer sentiment are two ways of talking about consumer attitudes. Among economic reports, consumer sentiment refers to the Michigan survey while consumer confidence refers to The Conference Board's survey. Why Investors Care
| Released on 8/15/08 For Aug 2008 | ||||||||||||
| ||||||||||||
Highlights
The good news in the Reuters/University of Michigan consumer sentiment report is that spirits aren't worsening and that inflation expectations are easing. The mid-month reading for consumer sentiment edged higher to 61.7 from July's 61.2 -- readings that are among the very lowest in 56 years of data. Current conditions fell nearly 4 points to 69.3 but this index was lower in June. Expectations rose more than 3 points to 56.8 for its least weak reading since March.
Inflation expectations offer the best news, falling 3 tenths from July to 4.8 percent for one-year out but holding steady at 3.2 percent five years out. Retail sales held steady in July and this report hints at stable results for August. Markets showed no reaction to the report.
The Reuter's/University of Michigan's Consumer sentiment index improved in July, coming off record lows. The Reuters/University of Michigan consumer sentiment index jumped to 61.2, nearly 5 points higher than the June reading. Both the current conditions and the expectations indexes improved. Likely reflecting a recent dip in gasoline prices, one-year inflation expectations dipped to 5.1 percent with 5-year expectations also down at 3.2 percent.
Consumer sentiment Consensus Forecast for preliminary August 08: 62.0
Range: 60.0 to 69.0
![[Chart]](chart.gif)
|
Consumer sentiment is mainly affected by inflation and employment conditions. However, consumers are also impacted by current events such as bear & bull markets, geopolitical events such as war and terrorist attacks. Investors monitor consumer sentiment because it tends to have an impact on consumer spending over the long run (although not necessarily on a monthly basis.) |
| 2008 Release Schedule | ||||||||||||||||||||||||||
|
powered by
![[Econoday]](../../../../../../../../../images/logo.gif){kind=logo}