Consumer Sentiment Index
(University of Michigan)

This survey measures the attitudes and expectations concerning both present and future economic conditions of 500 consumers. Just like Consumer Confidence, the level of consumer sentiment is directly related to the strength of consumer spending. It is almost identical, with two subindexes - expectations and current conditions, but has two monthly releases, a preliminary and final reading. The consumer expectations portion of the Michigan survey is a component of the leading economic indicators index. Consumer spending accounts for two-thirds of the economy, so the markets follow any indicator relating to consumer behavior and attitudes. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. It is interesting to note that changes in consumer sentiment and retail sales don't move in tandem. The Preliminary Consumer Sentiment Index (University of Michigan) is scheduled for release at 9:00 (CST) on the second Friday of the month with the Final Consumer Sentiment Index scheduled for 9:00 (CST) on the fourth Friday of the month by the University of Michigan (to subscribers).

POTENTIAL IMPACT ON INTEREST RATES: MODERATE