Basic, Learn

The University of Michigan Consumer Sentiment Index? What does it mean?

 Preface

Did you notice that there will be a key data released at the end of the month – The University of Michigan Consumer Sentiment Index? What is the University of Michigan Consumer Sentiment Index? How does it affect us? Do you know how important it is?

What is the University of Michigan Consumer Sentiment Index?

In order to study the impact of consumer demand on the economic cycle, the Survey Research Center of the University of Michigan compiled the Consumer Confidence Index.

The report is based on survey results of approximately 500 to 600 adult consumers,  not only calculates a seasonally adjusted index of consumer confidence, but also current conditions (including financial and purchasing conditions) and expectations (including expected financial and economic conditions for the next 1 and 5 years). The University of Michigan Confidence Index is mainly to understand the degree of consumer confidence in the economic environment, but also reflects consumers’ views on the current economic situation and future economic prospects, income levels, and income expectations. It is a leading indicator for predicting economic trends and consumption trends.

The University of Michigan’s confidence index provides a valuable guide for observing changes in consumer attitudes, which in turn can better predict consumer behavior. In addition, the University of Michigan’s confidence index data is less volatile and more stable than other data for similar purposes. The University of Michigan’s Consumer Confidence Index has a stronger correlation with consumer spending than the Conference Board’s Consumer Confidence Index.

The Impact of the University of Michigan Consumer Confidence Index

The rise in the consumer confidence index indicates that consumers have a strong willingness to consume goods and services, which is conducive to economic expansion;
On the contrary, the fell in the consumer confidence index indicates that consumers’ willingness to spend is not high, and the possibility of economic slowdown increases.

As a result,
if the consumer confidence index higher than expected, then US dollar inclines;
if the consumer confidence index lower than expected, then US dollar declines.

Announcement time

The initial value is announced on the second Friday of each month, while the final value is announced on the fourth Friday of each month.
However, the initial value usually has a large impact to the market.

How to trade in HXFX?

1. First, click here to register an HXFX account for free.
2. Next, download the APP and log in to complete the real-name authentication.
3. Contact customer service to receive your exclusive free trial bonus.
4. Click “Quote”, select the product you want to trade, then click “Trade”. After the quotation page is displayed, you can click “Sell” or “Buy” to trade the index according to the trends.

5 Advantages of Foreign Exchange Trading

1. Leverage system
Investing a small amount of money will bring greater benefits, but may also bring greater risk of loss.
2. Low transaction costs
There are basically no handling fees, government taxes, etc.
3. Two-way transaction
Whether you are buying first and then selling in a bullish trend, or selling first and then buying in a bearish trend, you can get profit.
4. 24 hours trading
It is available in 24 Hours, investors can trade according to their own time.
5. High liquidity
In the foreign exchange market, investors could exchange foreign currency at any time, even complete their transactions in a short time.

For more investment knowledge and the latest market

Follow us on HXFX Global fan page
Facebook:
Malaysia>>
Philippines>>
Helping you become an investor master more easily!!

Get Free Trial Bonus, Free Experience Investment! The Journey Of Investing From Scratch.

Register for free at HXFX and get a free trial bonus to experience investment immediately! It’s easy and stress-free, you can withdraw your profits from trading! Professional analysts provide the latest market strategies every day and the daily investment tutorial that you can understand at a glances, all support you from 0 basics to investment experts!
Seats are limited, click me to get the free trial bonus now! For more HXHX’s bonuses, view here>>
Disclaimer: Information above can only be use for references and doesn’t represent our platform’s opinions.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.