University of Michigan Consumer Sentiment Index vs. S&P 500

This chart shows University of Michigan's Consumer Sentiment Index along with Retail Sales and Durable Goods Orders, in relation to the S&P 500. Note the relationship between Consumer Sentiment and sales.  Consumer Sentiment is considered by many market timers to forecast the near term strength in retail sales (retail and consumer goods stocks).  Consumer Sentiment does react to stock market conditions, however.  So at times, this is a lagging indicator.

NOTE: The left axis is for the Consumer Sentiment values. The right axis is for the Retail Sales and Durable Goods Orders, in %. So that the chart dates align properly, the right axis will disappear when the bottom chart is moused over. The white horizontal line is the 0% line for Retail Sales and Durable Goods Orders.

The Conference Board will not grant permission to provide graphical analysis of their Consumer Confidence data or Leading Economic Indicator (LEI).