Present Situation Index

What is the Present Situation Index?

The Present Situation Index measures overall consumer sentiment regarding the current economic situation as it relates to them. It is one of two components that make up the Consumer Confidence Index. The Present Situation Index focuses on consumer feelings about current business and employment conditions.

Why is the Present Situation Index important?

Since the Present Situation Index focuses on attitudes about current market conditions it can be more reliable compared to expectations for future conditions. Although, an understanding of current perceptions can provide insights that improve future expectations and business decisions.

What should you do?

Follow the Present Situation Index to help gauge consumers attitude towards the current market and near-term demand for products. The Present Situation Index is used by investors, policy-makers, and business leaders to help inform both short and long term decisions. Majestic’s CORE Report follows the Present Situation Index; along with other indicators every week to see where the market stands.

Source: Investopedia.com