Key points
- Surveys by Conference Board and University of Michigan.
- Predicts consumer spending patterns.
- Drops sharply before recessions.
Example
A drop from 110 to 95 alongside rising gas prices often foreshadows softer retail sales and slower GDP prints.
In history
The Conference Board index sank to a record low of 25.3 in February 2009. In June 2022 the University of Michigan sentiment index hit a record low of 50 as high inflation eroded real wages.
Related terms