Trading the Michigan consumer sentiment report

The Michigan consumer sentiment report (MCSI), also known as the University of Michigan consumer sentiment report (UM Consumer sentiment report) or Michigan Consumer Sentiment report is an indicator of the consumer confidence on various aspects ranging from personal finance to purchasing power. The UM consumer report is based on telephone surveys and is a front runner to indicate any hints on future interest rate decisions.

The UM consumer sentiment report is sampled on a monthly survey of around 500 consumers as compared to the CCI or Consumer Confidence Index extablished by the Conference board. The Michigan Consumer Sentiment is considered to be a leading economic indicator as it can potentially predict the general consumer spending, which plays a major role in the overall economic activity in the US thus can be a market mover for the prices.

The Michigan Consumer Sentiment Report is aimed at gauaging the general sentiment on three main points:

  • The present financial situation of the respondents
  • The short term general economic outlook
  • The long term general economic outlook

The consumer sentiment report primarily addresses the question on the general outlook of the US consumer, whether it is optimistic or pessimistic. The Michigan consumer sentiment index on a technical aspect considers two factors which is the current conditions and the expected conditions. In fact one may assume that the consumer sentiment index captures the consumer reaction to the prevailing market conditions such as prices and interest rates and also factors in the unemployment conditions and so on.

Michigan Consumer Sentiment Report – When is it released

A preliminary report comprising of about 60% of the total survey results is usually released around the 10th of every month whereas a final report for the previous month is released on the 1st of the month. The MCSI index useful for investors as it gives a snapshot of whether consumers feel like spending money.

Below is a quick brief on the fourth quarter of 2011 leading up to the present day’s release.

Release Date Actual Forecast Previous
10 Feb, 2012 74.30 75.00
13 Jan, 2012 74 71.2 69.90
09 Dec, 2011 67.7 65.6 64.1
23 Nov, 2011 64.10 64.60 64.20
11 Nov, 2011 64.2 61.30 60.90
28 Oct, 2011 60.9 58.20 57.50
14 Oct, 2011 57.50 60.00 59.40

Michigan Consumer Sentiment Report – Assets to trade

The Michigan consumer sentiment report is ideal to the EUR/USD and GBP/USD as well as global indices such as the S&P500 and the Dow Jones Index.

Trading the Michigan Consumer Sentiment Report

Given the fact that the Michigan consumer sentiment report can impact the prices and potentially be a market mover, we recommend the following brokers to trade when the news is released.

LMAX Exchange: Operating as the only FCA regulated MTF, LMAX exchange offers one of the most competitive spreads in the Fx industry. Traders can trade via the LMAX Web trading platform or with the MT4 trading platform. Click here to open account with LMAX Exchange.

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