| Prior | Consensus | Consensus Range | Actual | |
| Sentiment Index – Level | 69.6 | 69.6 | 68.0 to 70.0 | 68.9 |
The University of Michigan’s Consumer Survey Center questions 500 households each month on their financial conditions and attitudes about the economy. Consumer sentiment is directly related to the strength of consumer spending. Consumer confidence and consumer sentiment are two ways of talking about consumer attitudes. Among economic reports, consumer sentiment refers to the Michigan survey while consumer confidence refers to The Conference Board’s survey.
The Reuter’s/University of Michigan’s Consumer sentiment index improved in mid-August to 69.6 from July’s full-month reading of 67.8. The latest number was still below the recent high of 76.04 in June of this year, but was significantly higher than the recession low of 55.3 or November 2008. But we could see some reversal for the final reading given the jump in initial jobless claims and drop in stock prices.
Consumer sentiment lost steam over the last two weeks, sending Reuters/University of Michigan’s index down seven tenths from the mid-month reading to a final August reading of 68.9. The implied reading for the second-half of the month is 68.2, barely ahead of July’s final reading of 67.8. Weakness the last half of the month was centered in expectations, a leading component that points to trouble ahead for the main index. Consumer sentiment fell off a small cliff in July and has yet to recover, a reflection of the weak jobs market and losses in the stock market.
