According to the most recent August 2018, University of Michigan Survey, Consumer Sentiment declined to 95.3. The decline was the fourth consecutive monthly decline. In April of 2018, the index had reached and had peaked at 100.0 for the first time since January of 2001.
Due to our discovery about consumer sentiment being a leading economic and market indicator BullsNBears.com will continue to monitor this economic metric very closely. It’s especially since the recent high could prove to be the peak for the current nine-year economic expansion that began in 2009 based on the indicator’s steady decline.
The survey which has been published since 1960 is a great barometer that can be utilized to predict recessions, economic recoveries and also secular bull and bear markets. As depicted by the chart below the results from the Michigan survey has predicted all recessions and economic recoveries since it was originally published.