The importance of consumer confidence survey

Consumer confidence survey is a key indicator of the overall health of the economy. When consumers have confidence in the stability of their income, this will affect their spending and saving activities.

As a result, traders pay particular attention to the Consumer confidence Index (CCI) and the University of Michigan Consumer confidence Index (MCSI), as these reports include inflation expectations and consumer outlook.

Consumer confidence index

The consumer confidence index survey is conducted every month, covering about 50 questions, covering consumer attitudes towards current and future business conditions, current and future employment conditions, and total household income over the next six months. The report is highly valued by the Federal Reserve and is a key factor in determining US monetary policy.

University of Michigan Consumer confidence Index

The University of Michigan Consumer confidence Index survey is conducted by phone to track consumers' views on their own finances and short-term and long-term economic trends. The initial data will be released around the 10th of each month, and the final and complete data will be released around the 1st of the following month.

Industry-specific report

While such reports reflect an overview of overall consumer confidence, they can also be linked to specific sectors, such as manufacturing and non-manufacturing. In some cases, some industries outperform others, and additional data can help traders trade based on consumer confidence in specific industries.

An example of a specific industry report is the Philadelphia Federal Reserve Survey Index, which tracks manufacturing. Other similar reports include the Chicago Purchasing managers' Index (PMI), manufacturing, services and composite PMI.

Conclusion

By measuring consumer confidence in the performance of specific industries, traders and the Fed can understand how consumers feel about the economy as a whole, while monitoring the likelihood of inflation.

As you know, there are many factors to consider when trading using the US Consumer confidence Survey, but with a certain amount of insight and thorough preparation, traders can find many opportunities.

Source of course: CME