The index of University of Michigan consumer sentiment has fallen seven tenths in its April reading, sliding to 77.2 points from 77.9 in March. This is its worst figure in two months, also disappointing market expectations of a slight decline to 77.8.
The component of University of Michigan's 5-year consumer inflation expectation has risen to 3% in April from 2.8% in March, reaching its highest level in five months. The expectation is in line with what was expected.
dollar reaction
The Dollar Index (DXY) has soared to three-day highs of 106.00 points after traders guided the result of the PCE US core, which has been higher than expected, and that consumer sentiment from the University of Michigan has weakened in April. The DXY is now moving around 105.99, gaining 0.40% so far on Friday.
economic indicator
University of Michigan Consumer Sentiment Index
The Reuters/Michigan consumer sentiment index published by Reuters is a survey on consumer confidence in economic activity. It shows the outlook of consumers regarding spending. A result above the consensus is bullish for the dollar, while a result below is bearish.
Last post: Fri Apr 26, 2024 14:00
Frequency: Monthly
Current: 77.2
Dear: 77.8
Previous: 77.9
Fountain: University of Michigan
Consumer exuberance can translate into higher spending and faster economic growth, which means a stronger labor market and a possible pick-up in inflation, helping the Fed become more optimistic. The popularity of this survey among analysts (mentioned more frequently than CB Consumer Confidence) is justified because the data here includes interviews conducted up to a day or two before the official launch, making it a timely measure of the mood of the consumer, but above all because it measures consumer attitudes about financial and income situations. Actual numbers that beat consensus tend to be bullish for the USD.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
