Consumer Sentiment Remains Near 26-Year Low In November
Consumer Sentiment Remains Near 26-Year Low In November
Consumer Sentiment (Nov) Actual 57.9, Expected 56.7, Previous 57.6
Release Explanation: This is the Reuters/University of Michigan Survey of Consumer Sentiment regarding current and future economic conditions. The survey, based on Reponses from about 500 consumers, builds an economic picture of the mood of the economy’s consumer and therefore how well the Service based economies may fair over the coming months. Retail Sales, New & Existing Home Sales, CPI, Durable Goods, and GDP over a period of time if a constant trend is being built. A currency will eventually be affected by these numbers, but only once they filter through to the main releases.
Trade Desk Thoughts: Consumer Sentiment remained near a 28-year low in November, as falling home prices, a weaker job market and declining stock prices weighed on sentiment.
Consumer expectations for conditions over the next six months dropped to 55.7 from 57, today’s report showed, while the gauge of current conditions rose to 61.4 from the previous month’s reading of 58.4, the lowest level ever.
“The gauge of future conditions is the one most sensitive to consumer spending,” said Matthew Carniol, chief currency strategist at TheLFB-forex.com. “The contribution of consumption to GDP is likely to fall going forward, threatening a deeper contraction in Q4 GDP than first estimated. We could see a 1.5% decline in output.”
The expected inflation rate was 2.9% over the next 12 months, compared with 3.9% in the October survey. That same rate is expected to be seen over the next 5 years, according to today’s report.
Forex Technical Reaction: Equity markets were recently near their lows of the day, with a 2.56% decline, but USD/JPY is holding above the lows of the day.
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