Revised UoM Consumer Sentiment (Jan) Actual 61.2, Expected 61.8, Previous 61.9
Release Explanation: This is the Reuters/University of Michigan's survey of consumer sentiment regarding current and future economic conditions. The survey, based on responses from about 500 households, builds an economic picture of the mood of the economy's consumer and therefore how well the service based economies may fair over the coming months. Retail Sales, New & Existing Home Sales, CPI, Durable Goods, and GDP over a period of time if a constant trend is being built. A currency will eventually be affected by these numbers, but only once they filter through to the main releases.
Trade Desk Thoughts: Consumer confidence remained near 50-year lows in January, according to the Reuters/University of Michigan's index of Consumer Confidence, with nearly all consumers anticipating the present recession will be the worst in the postwar period.
The index remains substantially below last January's 78.4 and the cyclical peak of 96.9 set in January 2007, although the boost from the Obama election has translated into a gain from November's 55.3 reading. However, The Index of Consumer Expectations was 57.8 in January, just ahead of the 54.0 in December and well below last January's 68.1and the January 2007 cyclical peak of 87.6.
Rising levels of unemployment remains the biggest concern among consumers; the latest report from the labor Department indicated the economy lost 2.6 million jobs during 2008. Significantly, consumers expect to see the unemployment rate reach 9.0% by the end of this year.
The majority of consumers said that their financial situation had worsened this month, up from one-in three In last January's survey. More consumers expected their household's income to decline in the January 2009 survey than at any time in more than a quarter century and as a result, they remained extremely hesitant to make large purchases.
Forex Technical Reaction: Stocks were recently heading for the session, down nearly 0.9%. The dollar has been fluctuating, but was recently gaining on the euro and the yen.