• by Jack Loechner , Staff Writer @mp_research, May 26, 2003

Michigan Says Consumer Expectations Up; Other Sources Say Not So

Recently reported in USAToday, consumer sentiment rose more sharply than expected in early May, as Americans looked ahead to better economic times, market sources said. A University of Michigan survey component index on consumers' current view on the economy fell to 94.1 in early May from April's 96.4, but the index of consumers' future expectations jumped sharply to 92.7 from April's 79.3, the sources reported.

The University of Michigan survey ran counter to the most recent insights on consumer confidence, which have shown sentiment reversing course and declining again as domestic economic concerns return to the fore. An ABC News/Money Magazine survey for the week to May 11 showed a third straight drop in sentiment, while Investor's Business Daily and TechnoMetrica Market Intelligence said their monthly economic optimism index edged down 0.4% to 56.2 in May from 56.4 the prior month.

Consumer sentiment is seen as a predictor of consumer spending, which drives two-thirds of the U.S. economy.

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