Klement on Investing • 1 implied HN point • 06 Mar 24
- Consumer sentiment surveys are essential indicators for future consumption, but some specific questions like the outlook on major purchases can predict consumption better than headline figures.
- Consumers tend to be overly optimistic about their future family finances compared to the overall economy, which can impact future consumption growth.
- The level of ex ante optimism, comparing expectations for family finances and the economy, can be a powerful predictor of future consumption growth, while ex post optimism influences savings ratios and credit usage.