U.S. Consumer Confidence Index

Previously, we discussed how the US job market is shaping up. In this part, we’ll look at the U.S. Consumer Confidence Index. The data, compiled by the University of Michigan and Thomson Reuters, are reported on a monthly basis. The Survey Research Center conducts the underlying survey, which consists of at least 500 telephone interviews with a cross section of consumers in the continental United States (VTI).

US Consumer Confidence Index Bounces Back in April

Consumer confidence rises

The above chart shows the latest trends in the U.S. Consumer Confidence Index. As you can see, the index has been on an uptrend, hitting 95.5 in April. This is the second highest reading since 2007. This is the fifth straight month the Consumer Confidence Index has been above 90. The index was last above 90 in July 2007.

Positive for automobile industry

A higher Consumer Confidence Index is positive for US vehicle sales. An increase in the index is one of the possible reasons behind the uptrend in vehicle sales. Analysts expect US vehicle sales to top the seasonally adjusted annual rate (or SAAR) of 17 million this year, the highest in a decade.

General Motors (GM) and Ford get more than 60% of their revenues from the North American market. North America is also the most important market for Honda (HMC). The region contributes ~45% of its revenues. An increase in the U.S. Consumer Confidence Index is positive for these companies.

Ford currently forms 2.68% of the Consumer Discretionary Select Sector SPDR ETF (XLY). Delphi Automotive (DLPH) forms 1.05% of XLY.

Prevailing interest rates on new automobile loans also impact automobile companies. In the next part, we’ll look at interest rates in detail.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.