Econoday Report: Consumer Sentiment 30, 2007

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Consumer Sentiment

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. Why Investors Care

Released on 3/30/07 For Mar 2007

Sentiment Index - Level
Actual	88.4
Consensus	88.8
Consensus Range	87.0 to 89.8
Previous	91.3

Highlights
The University of Michigan's consumer sentiment index came in at 88.4 in March, little changed from a mid-month reading of 88.8 and down slightly from February's 91.3. Consumer sentiment readings, including Tuesday's report from the Conference Board, have been edging lower in line with rising gasoline prices and reflecting softness in the housing and manufacturing sectors.

Despite the ongoing rise in prices at the pump, inflation expectations were unchanged in the month at 3.0 percent. This result offsets a moderate rise in the Conference Board's inflation reading and will help ease concern that gas prices are affecting consumer psychology. There was no significant reaction to the data.

Market Consensus Before Announcement
The University of Michigan's Consumer sentiment index slipped in the preliminary report for March, falling 2.5 points to 88.8 - the lowest reading since September. However, the labor market and stock market have been improving and some of this might be rubbing off on consumers.

Consumer sentiment Consensus Forecast for final March 07: 88.8
Range: 87.0 to 89.8

Trends

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.)

Data Source: Haver Analytics

2007 Release Schedule

Released On: 2/2 3/2 3/30 4/27 6/1 6/29 7/27 8/31 9/28 10/26 11/21 12/21

Released For: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec