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Economic Indicators · Module 3: Growth & Activity · Lesson 4

Consumer Confidence

Intermediate 6 minLesson 10 of 12

Learning objectives

  • Explain consumer confidence in plain language
  • Understand why it matters to markets
  • Recognise a common misconception

The concept

Definition: surveys of household sentiment — the Conference Board index and University of Michigan sentiment, monthly.

Why it matters

Sentiment can foreshadow spending.

How markets interpret it

Michigan's -expectations component is closely watched. Market reactions are never guaranteed: they depend on expectations, positioning, and other news.

Key takeaways

  • Monthly sentiment surveys.

Knowledge check

University of Michigan sentiment includes…

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