The index of University of Michigan consumer sentiment fell 1.5 points in preliminary reading for April, settling at 77.9 compared to 79.4 in March. The figure worsens market expectations, which expected a slight decline to 79.
The component of 5-year consumer inflation expectations rose to 3% from 2.8% previously, its highest level in five months.
dollar reaction
The rise in the 5-year inflation expectation from the University of Michigan survey reinforces the Dollar, whose DXY Index reached the 106.03 area minutes before the data, its highest level since November 3, 2023.
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 12, 2024 14:00 (Prel)
Frequency: Monthly
Current: 77.9
Dear: 79
Previous: 79.4
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.
