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Previous: 67.4 Expected: 67.8 Actual: 69.1
Revised UoM Consumer Sentiment Index
The Revised UoM Consumer Sentiment Index is an important measure of consumers’ current opinion about the economy and personal financial conditions. This indicator is being prepared by the University of Michigan Business School.
Researchers survey a sample of consumers each month about their economic impressions and expectations. The indicator is then calculated based on the results of the survey to measure:
• Consumers’ satisfaction with their current financial situation
• Their future expectations of income and job opportunities
• Their opinion of the current and future level of sales
The index is closely watched by economic decision makers for the general trend of consumer activity in Michigan. The higher the confidence, the higher the chances of higher spending and demand for goods and services.
If the Consumer Confidence Index in the US state of Michigan comes out higher than expected, it indicates that consumers are more confident about the economy and their personal finances, as follows:
• Spending and demand for goods and services will increase. Consumers are more comfortable about their incomes and job opportunities.
• Savings rates will drop. More revenue will be directed towards spending.
• Michigan’s commercial sector may grow. Where the demand for products and services will increase.
• Employment may increase, as companies will need more manpower to meet the growing demand.
• Real estate prices may rise, because increased economic confidence encourages investors.
In general, the increase in the consumer confidence index above expectations is a positive sign for the economy in the state of Michigan, which pushes the direction of growth and economic activity.
How does the Revised UoM Consumer Sentiment Index affect the US dollar in Forex?
The Michigan Consumer Sentiment Index can help forex traders in several ways:
• Provides an idea of the direction of the US economy. If consumer confidence increases, the dollar may strengthen. vice versa.
• It can be used for timing entry or exit of positions. When the index drops suddenly, the dollar can be bought because confidence is deteriorating.
• It can help determine the general direction of the dollar. When consumer confidence is high, the dollar tends to appreciate.
• Analyzing it with other economic data can give you a clearer picture of the dollar’s situation.
• It can be used to identify short term trading opportunities in relation to the dollar.
All in all, the stronger the Consumer Confidence Index, the greater the chances that the Dollar will rise. The opposite is true when the indicator is weak.
The body that issues the consumer confidence index in the US state of Michigan
The Michigan Consumer Sentiment Index is released by the University of Michigan Business
Researchers at the University of Michigan’s Behavioral Economics Research Laboratory monthly survey a sample of consumers in the state about their economic views.
The monthly index is then calculated to measure the level of consumer confidence based on the results of the survey.
The laboratory then publishes the indicator and its details each month in order to:
• Helping economic decision makers know the tone of the economy in the state.
• Providing important information to investors and commercial companies.
• Contribute to economic research on consumer behavior.
The release date of the Consumer Confidence Index in the US state of Michigan
It is released monthly, usually on the last Friday of the current month
Next release
Jun 28, 2024
