US consumer sentiment index
According to a report from the University of Michigan, the US consumer sentiment index has risen slowly in February 2017. It stood at 96.3 in February 2017 as compared to 98.5 in January. The reading in February was higher than the preliminary figure of 95.7.
The consumer sentiment index focuses on three areas:
- What are consumers’ views of their own financial situation?
- How do consumers view the general economy over the short term?
- How do consumers view prospects for the economy over the long term?
Impact on the economy
The improvement in the consumer sentiment index is a positive sign for the economy. The US consumer sentiment index improved slowly in February as compared to January, which indicates that consumers are a little concerned about the US economy. The policy uncertainty is creating a major worry for investors.
However, the improvement in per capita income is a welcome sign for the economy (SPXL) (IWM). The labor market also showed improved figures in January 2017. An improvement in the labor market conditions will speed up consumer spending in the economy (VFINX) (VOO) (SPY) in the near future.
In the next part of this series, we’ll analyze weekly crude oil inventories for the week ended on February 17, 2017.