University of Michigan: Consumer Sentiment

Q: How often is the Consumer Sentiment Index updated?

A: The index is updated monthly, typically near the end of each month. Preliminary results are released mid-month, with final results at month's end.

Q: What makes consumer sentiment important?

A: Consumer sentiment directly influences spending patterns, which drive approximately 70% of U.S. economic activity. Changes in sentiment can predict future economic trends.

Q: How do economists interpret the index?

A: A rising index suggests increasing consumer confidence and potential economic expansion, while a declining index might indicate expected economic challenges or reduced spending.

Q: Can the index predict economic recessions?

A: While not definitive, significant and sustained drops in consumer sentiment can be an early warning sign of potential economic downturns or recessions.

Q: What factors influence consumer sentiment?

A: Key factors include employment rates, inflation, stock market performance, political climate, and personal financial expectations.