Sentiment is well below expectations and is at its lowest level since November 2022. Inflation figures were mixed, with a one-year decline and five-year gains (and the highest since 2011).
Stock prices are on a downward trend. Yields are slightly higher.
EURUSD is rising and moves towards 1.9000 (USD weaker). GBPUSD is also on the rise, returning above the 1.2500 level after rising to a low of 1.24905.
The Michigan Consumer Confidence Index (MCSI) is a widely-accepted economic indicator that measures overall levels of consumer confidence and optimism in the United States, with a particular focus on Michigan. The survey is published monthly by the Center for Research Studies at the University of Michigan as part of its Consumer Survey. The index is based on a survey of approximately 500 households and asks about their current financial situation and their expectations for the future, including their finances, economy and purchasing plans.
MCSI is important because it reflects consumer sentiment, a key factor in the US economy. Private consumption accounts for about two-thirds of the country’s gross domestic product (GDP
GDP
Gross Domestic Product (GDP) is the monetary value of all goods and services produced within a country’s borders over a specified period of time (usually a year). Used to measure a country’s economic activity and growth. Periods of less than one year are often presented in annual or year-over-year format. There are three ways to calculate GDP. Expenditure approach: GDP is calculated by adding up all expenditures on domestic goods and services.This includes consumers
Gross Domestic Product (GDP) is the monetary value of all goods and services produced within a country’s borders over a specified period of time (usually a year). Used to measure a country’s economic activity and growth. Periods of less than one year are often presented in annual or year-over-year format. There are three ways to calculate GDP. Expenditure approach: GDP is calculated by adding up all expenditures on domestic goods and services.This includes consumers
), positive or negative emotions can directly influence spending behavior. As a result, the index is considered a leading indicator of consumer behavior and can indicate future economic trends.
Investors, businesses and policymakers closely monitor MCSI to assess the health of the economy and make informed decisions. A high consumer sentiment index usually suggests that consumers are more confident about their financial situation and the economy, which can lead to increased spending, economic growth and potential interest rates. It can lead to rising pressure. Conversely, a low index could indicate declining consumer confidence, which could lead to lower spending, a slower economy and lower interest rates.