Econoday Economic Report: Consumer Sentiment November 23, 2011

2011 Economic Calendar

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Consumer Sentiment

Released On 11/23/2011 9:55:00 AM For Nov, 2011

	Prior	Consensus	Consensus Range	Actual
Sentiment Index - Level	64.2	64.6	63.5 to 66.0	64.1

Highlights
Consumer sentiment has held steady the last half of the month, indicated by a full-month 64.1 composite reading that is little changed from 64.2 in the first half of the month. The current conditions component did improve, up one point from mid-month to 77.6, though the expectations component, which is the composite's leading component, fell nearly one point to 55.4. Inflation expectations are steady with one-year expectations unchanged at 3.2 percent and with five-year expectations up one tenth to 2.7 percent.

When compared with October, sentiment improved during November yet with the gain loaded entirely in the first half of the month. This is a reminder the ever-building risk over European sovereign debt may be squelching further improvement. The stock market is making new lows following release of today's report.

Market Consensus before announcement
The Reuter's/University of Michigan's consumer sentiment index held on to its strong gain in the last half of October, coming in at 64.2 for the mid-month November reading. This compares with an implied 64.3 reading in the last half of last month and a 60.9 reading for all of October. Sentiment is at its highest since June of this year. The September gain was centered in the leading component of expectations which, compared to all of October, is up more than four points at 56.2. The coincident component of current conditions is at 76.6, compared to 75.1 for all of October.

Definition
The University of Michigan's Consumer Survey Center questions 500 households each month on their financial conditions and attitudes about the economy. Consumer sentiment is directly related to the strength of consumer spending. Consumer confidence and consumer sentiment are two ways of talking about consumer attitudes. Among economic reports, consumer sentiment refers to the Michigan survey while consumer confidence refers to The Conference Board's survey. Preliminary estimates for a month are released at mid-month. Final estimates for a month are released near the end of the month. Why Investors Care

Consumer sentiment is mainly affected by inflation and employment conditions. However, consumers are also impacted by current events such as bear & bull markets, geopolitical events such as war and terrorist attacks. Investors monitor consumer sentiment because it tends to have an impact on consumer spending over the long run (although not necessarily on a monthly basis.)

2011 Release Schedule

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