The Importance of Consumer Confidence to the Markets

Sentiment and consumer confidence play an important role in moving the capital markets.  Sentiment is usually a function of the direction of a market along with the confidence of consumers and producers within various nations.  Although situations do exist where sentiment by market participants is positive but confidence by consumers and producers is negative, these measurements generally move in tandem and over the course of time will correlate highly with one another.

Producer and consumer confidence are the most common ways to measure economic sentiment.  Producer sentiment is another way of say business confidence, as it measures how business feel they will perform in the current environment as well as in the future.

consumer confidenceFor example, in the United States many cities and states, as well as the nation report producer sentiment in the form of purchasing manager’s indices. New York, Philadelphia, along with Chicago are some of the cities that report on the state of manufactures.  At the end of each month, both the Institute of Supply Management and Markit release reports that show indices that measure items such as new orders, employment, prices, and the state of the overall business.  These sentiment surveys are absorbed by market participants and help determine the state of the economy as reflected by the producer.

This content is restricted to site members. If you are an existing user, please log in. New users may register below for FREE.

Existing Users Log In
   
New User Registration
*Required field
easyMarkets
With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.
easyMarkets on FacebookeasyMarkets on GoogleeasyMarkets on TwittereasyMarkets on Youtube
easyMarkets

easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

Translate »