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Monday, October 16, 2017

Consumer Sentiment Index at highest level since 2004.

Since President Trump won the presidential election, the Consumer Sentiment Index has surged to its highest level since 2004.

In October 2016, Obama's last full month before the election, the index stood at 87.2. Figures for October 2017 show the Consumer Sentiment Index has since risen to 101.1. This represents a 15.9% increase over the last year, and is the highest level seen since 2004.



The Consumer Sentiment Index, published by the University of Michigan, measures the consumer's level of optimism/pessimism, as well as economic expectations and probable future spending behavior of the consumer.

Other results from the University of Michigan's consumer confidence index are also positive. The Index of Consumer Expectations shows an increase from 76.8 to 91.3 over the last year; a 18.9% increase. The Current Economic Conditions index has increased from 103.2 to 116.4 over the last year; a 12.8% increase.

The latest University of Michigan report suggests things could improve further, and states:

"Nothing in the latest survey indicates that consumers anticipate an economic downturn anytime soon."
"Consumers anticipate low unemployment, low inflation, small increases in interest rates."

Encouragingly, they also suggest current consumer confidence could lead to further records being broken:

"The data indicate a robust outlook for consumer spending that extends the current expansion to at least mid 2018, which would mark the 2nd longest expansion since the mid 1800s."

#TheTrumpEffect

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