Global| Dec 10 2004U.S. Consumer Sentiment Rebounded in December
by:Tom Moeller
|in:Economy in Brief
Summary
The University of Michigan's mid-month reading of consumer sentiment rebounded in December to 95.7, up 3.1% from November. Consensus expectations had expected 93.5. During the last ten years there has been a 75% correlation between [...]
The University of Michigan's mid-month reading of consumer sentiment rebounded in December to 95.7, up 3.1% from November. Consensus expectations had expected 93.5.
During the last ten years there has been a 75% correlation between the level of consumer sentiment and the y/y change in real PCE.
Consumer expectations index added 4.2% m/m to the 1.7% gain in November and the current economic conditions index rose 1.5% for the third consecutive monthly increase.
Consumer sentiment amongst families earning more than $50,000 per year fell slightly m/m but rose 2.0% y/y. Sentiment amongst families earning less than $50,000 per year surged 9.5% m/m (5.3% y/y.
The University of Michigan survey is not seasonally adjusted.The mid-month survey is based on telephone interviews with 250 households nationwide on personal finances and business and buying conditions. The survey is expanded to a total of 500 interviews at month end.
"Consumer Sentiment and the Media" from the Federal Reserve Bank of San Francisco can be found here.
In advance of next week's FOMC meeting and also from the Federal Reserve Bank of San Francisco is this reminiscence of events 25 years ago titled "October 6, 1979" as well as "Gauging the Market's Expectations about Monetary Policy."
| University of Michigan | Mid-Dec | Nov | Y/Y | 2003 | 2002 | 2001 |
|---|---|---|---|---|---|---|
| Consumer Sentiment | 95.7 | 92.8 | 3.3% | 87.6 | 89.6 | 89.2 |
| Current Conditions | 106.3 | 104.7 | 9.6% | 97.2 | 97.5 | 100.1 |
| Consumer Expectations | 88.8 | 85.2 | -1.1% | 81.4 | 84.6 | 82.3 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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