This page tracks the University of Michigan Consumer Sentiment Index, one of the most widely followed measures of how optimistic or pessimistic consumers feel about their personal finances and the overall economy. Because consumer spending drives roughly two‑thirds of U.S. GDP, sentiment trends can offer early signals about future economic activity.
What This Chart Shows
- Consumer optimism during economic expansions
- Sharp declines during recessions (1980, 2008, 2020)
- Sensitivity to inflation, job market conditions, and interest rates
- How consumer psychology shifts ahead of spending changes
- Long‑term cycles in confidence tied to macroeconomic trends
Key Takeaways
- Consumer sentiment is a leading indicator of household spending
- High sentiment supports stronger retail sales and economic growth
- Low sentiment may signal caution, reduced spending, or recession risk
- Inflation and job security heavily influence sentiment readings
- Useful when paired with CPI, Retail Sales, and Unemployment Rate
Data Source
University of Michigan via FRED®