Consumer Sentiment

What is 'Consumer Sentiment'

Consumer sentiment is a statistical measurement and economic indicator of the overall health of the economy as determined by consumer opinion. Consumer sentiment takes into account an individual's feelings toward his or her own current financial health, the health of the economy in the short term and the prospects for longer term economic growth.

BREAKING DOWN 'Consumer Sentiment'

Consumer sentiment developed as an economic statistic during the mid-20th century, and has become a barometer whose results influence public policy, economic policy and the stock markets. When consumer sentiment is less positive, markets typically react bearishly and vice versa.


One of the closely followed publications of the consumer sentiment is the University of Michigan Consumer Sentiment Index (MCSI).

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RELATED FAQS
  1. What's the difference between consumer confidence and consumer sentiment?

    There isn't a difference between consumer confidence and consumer sentiment. Both terms are used to refer to the degree of ... Read Answer >>
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    Understand how key economic factors such as inflation, unemployment, interest rates and consumer confidence affect the level ... Read Answer >>
  3. How do changes in interest rates affect the spending habits in the economy?

    Examine the factors that typically determine how consumers react to interest rate changes in terms of increasing their levels ... Read Answer >>
  4. What methods can be used to measure and profit from investor sentiment?

    First of all, when people talk about investor sentiment, or market sentiment, they are referring to the aggregate attitude ... Read Answer >>
  5. What are some limitations of the consumer price index (CPI)?

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