top of page

Prelim UoM Consumer Sentiment

This article includes an explanation of the Michigan Consumer Confidence Index and its impact on the markets, with a look at previous data and expectations for today’s data.

This indicator measures the level of consumer confidence in economic activity. It is a leading indicator because it is able to predict consumer spending, which forms a major part of overall economic activity, and is concluded from a survey of about 500 consumers. High readings indicate consumer positivity.

The University of Michigan Consumer Confidence Index in the US was revised down to 69.5 in August 2023, from 71.2 in the initial reading. The expectations measure was revised down to 65.5 from 67.3 and the current conditions sub-index was revised down to 75.7 from 77.4. Meanwhile, this year's inflation forecast was revised up to 3.5% from 3.3% and the 5-year forecast was revised up to 3% from 2.9%. “Consumers evaluated a range of positive and negative factors in the economy, resulting in different offsetting trends across demographic groups. Consumers see the rapid improvement in the economy compared to the past three months as being dampened, especially with inflation, and are hesitant about the outlook ahead.”

Expectations for today's index and how it affects the currency

The expected reading for today's statement is 69

A reading higher than expected has a positive impact on the currency, and a reading lower than expected has a negative impact on the currency

Prelim UoM Consumer Sentiment
Prelim UoM Consumer Sentiment



bottom of page