Consumer Sentiment

Consumer sentiment refers to how optimistic or pessimistic consumers feel about the economy and their own financial situation. It's an important economic indicator because consumer spending makes up a large part of the overall economy. So, if consumers are feeling confident, they're more likely to spend money, which can boost economic growth. On the other hand, if consumers are feeling worried, they may cut back on spending, which can slow down the economy.

How it's measured: There are a few different surveys that measure consumer sentiment, but two of the most common are the University of Michigan Consumer Sentiment Index (UMCSENT) and the Conference Board Consumer Confidence Index®. Both surveys ask consumers about their feelings about current economic conditions, their expectations for the future, and their plans for spending.

Current sentiment: Consumer sentiment in the US has ticked down slightly in March 2024, but it's still hovering around the middle ground compared to historical averages. This suggests that consumers are cautiously optimistic about the economy.

Impact of inflation: Inflation has been a major concern for consumers in recent months. However, recent surveys show that consumers are expecting inflation to cool down further, which could improve sentiment.


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