Previous : 63.2
Forecast : 63.5

Definition :
Michigan consumer sentiments index a survey of consumer confidence conducted by the University of Michigan. The preliminary report is released on the tenth (except on weekends) of each month. A final report for the prior month is released on the first of the month.

The index is becoming more and more useful for investors. It gives a snapshot of whether or not consumers feel like spending money in the economy.

Why is it useful?
The importance of consumer confidence index at currency market is considered moderate, because it influences consumers consumption level, so if the expected percentage inclines, it means that the consumer confidence in the local economic will likely to improved and it effects consumers' willingness to spend money that allows them to obtain available utilities granted by the economy; as a result the aggregate demand on goods and services will increase which cause rising production quantities produced by different factories. Accordingly the local currency supply quantity becomes more available in the market, and certainly this will strengthen the currency.

At the same time this indicator has a similar effect on the stock market, because if it shows positive figures that means it will leave a significant improvement on several companies stocks in different sectors, as an outcome to increasing consumers' willingness to spend more money to satisfy their needs from diverse goods and services, which pushes up stock indices.

Some studies proved that this effect might be theatricality true, that in fact it might not leave any considerable effect on the local currency; that's why the effect is not necessarily valid every time and is moderate.