Consumer sentiment hits 98.5 in November vs. 98 estimate
With consumer sentiment staying very steady the last year and a half it looks as though people are confident in the economy. With consumer sentiment being the consumer opinion on the economy, it shows people are confident in the economy. This is extremely important due to the fact that the economy can be a self-fulfilling prophecy. If this number continues to grow, growth could improve better than previously forecasted. If consumers demand more businesses would produce more, eventually moving long run aggregate supply or in other words, moving the steady state. Although there are other factors that go into the economy this is major piece and could push the economy even further forward.
https://www.cnbc.com/2017/11/22/november-us-consumer-sentiment-index.html
https://www.cnbc.com/2017/11/22/november-us-consumer-sentiment-index.html
Consumer sentiment hasn't been this high in a while. I agree that the economy can be a self-fulfilling prophecy. However it seems that we are in the peak of our economic growth and activity to most economists. When the economy begins to slow down would you assume consumer sentiment would decline as well?
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