The Microsoft-CivicScience Economic Sentiment Index powered by HPS (“ESI”) is a “living” index that measures U.S. adults’ expectations for the economy going forward, as well as their feelings about current conditions for major purchases. The primary goal of the Index is to accurately measure movements in overall national economic sentiment and to provide a more sophisticated alternative to existing economic sentiment indices. Unlike other prominent indices that release consumer sentiment estimates infrequently, the Microsoft-CivicScience Index is updated in real-time as responses are collected continuously every hour, every day. Large-scale cross-tabulation of survey responses and consumer attributes enable more granular analyses than are currently possible through prevailing measures.
Excerpt From the Latest Reading:
Consumer confidence continued its month long increase, according to the Microsoft News-CivicScience Economic Sentiment Index (ESI), powered by Hamilton Place Strategies. After the ESI rose marginally during the last reading, confidence accelerated over the past two weeks, increasing by 1.0 point to 51.3. The reading reached its highest level since August and was driven by a 4.3-point increase in consumers’ confidence in making a major purchase.
The increase comes as Dow Jones Industrial Average and S&P 500 hit all-time record highs, 3rd quarter earnings results are making economists optimistic about a 2020 rebound, and the Fed slashed interest rates for the second time in seven weeks.
Three of the ESI’s five indicators increased during the reading period. Consumer confidence toward making a major purchase increased the most, rising by 4.3 points to 55.4. Confidence in the U.S. economy and the job market increased by 1.6 and 0.5 points, respectively. Meanwhile, consumer sentiment toward personal finances fell 1.2 points after last reading’s increase of 2.4 points. Confidence in the housing market continued its month-long fall, decreasing by 0.3 points to 51.0.
Read the full report here.