The University of Michigan’s Index of Consumer Sentiment is one of two monthly US consumer sentiment indices, the other being the Conference Board’s Consumer Confidence Survey. It covers personal finances, business conditions and buying conditions. As private consumption accounts for a majority of GDP growth in advanced economies, consumer sentiment surveys present a picture of the economy well in advance of official reports.
The latest survey conducted by the University indicates US consumers have been alarmed by increased uncertainties spanning US monetary, fiscal and trade policies as well as others. The result was a hefty drop in the index from 98.3 in December to 90.7 in January. However, it is still just above the long-term average (see chart below).
