Consumer Sentiment Following Other Indicators Down

Consumer sentiment hit the lowest level since December coming in at 72.0, down from the 73.2 reading in June. The consumer sentiment report measures the attitudes and expectations concerning both present and future economic conditions of 50...0 consumers. Just like Consumer Confidence, the level of consumer sentiment is directly related to the strength of consumer spending. It is almost identical, with two subindexes - expectations and current conditions, but has two monthly releases, a preliminary and final reading. The consumer expectations portion of the Michigan survey is a component of the leading economic indicators index. Consumer spending accounts for two-thirds of the economy, so the markets follow any indicator relating to consumer behavior and attitudes. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend.