Consumer Activities
Economic data used to gauge consumers’ moods & sentiment and ultimately spending level
Consumer activities account for 70% of US economy
Retail sales is the broadest indicator of consumer activities
Consumer confidence & sentiment are leading indicators for consumer activities
RETAIL SALES
Measures level of consumer spending on goods. It accounts for 70% of economic activity. Obtained from surveying 13,000 retailers. Overly strong retails sales not good for USD in long run.
Retail Sales UP => Inflation UP => Interest rates UP => USD UP
Retail Sales DOWN => Inflation DOWN => Interest rates DOWN => USD DOWN
CONSUMER CONFIDENCE
Examine how consumers feel about changes in labour market, economy & spending. The index consists of Present Situation index and Expectations index.
Confidence DOWN => Inflation DOWN => Interest rates DOWN => USD DOWN
Confidence UP => Inflation UP => Interest rates UP => USD UP
UNIV. OF MICHIGAN CONSUMER SENTIMENT
Assessment of consumers’ attitude on change in business climate, personal finance & shopping. Consists of index of current economic conditions & consumers expectation.
Sentiment UP => Economy UP => USD UP
Sentiment DOWN => Economy DOWN => USD DOWN
