sentiment index

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Sentiment Index

A mathematical calculation on average or median forecast made by well-respected analysts on the future direction of the market. That is, the sentiment index uses certain data to show what analysts believe future market movements will be. See also: Earnings Expectations, Forecasting.

sentiment index

A numerical guide to investor feeling toward the securities markets that is constructed to determine whether certain segments of the investment community are bullish or bearish. The index is used by technical analysts to determine whether stock should be bought or sold. Sentiment is measured in a variety of ways including short sales by specialists, mutual fund cash positions, and the amount of margin debt. Compare advisers' sentiment.

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2 in September, leaves the measure oscillating around remarkably lofty levels, as is the case with all of the producer sentiment indexes.

The U.S. ISM climb to a 14-year high of 60.8

Sentiment indexes, which are constructed from answers to survey questions, are popular with the media; newspaper articles and commentaries abound following their release.

Few studies have found that sentiment indexes have significant explanatory power once fundamental economic factors are taken into account.

In this section, we summarize the empirical literature on the use of consumer sentiment indexes in a consumption function.

The inclusion of such variables in a consumption equation will ensure that the addition of sentiment indexes provides further explanatory power only to the extent that the indexes capture information relative to expected income, uncertainty, or at least information not found in standard macroeconomic data.

The findings in the empirical literature on consumer sentiment indexes can be divided into three groups.

The second group includes studies finding that sentiment indexes have an incremental explanatory value.

The third group of studies finds that sentiment indexes are useful because they improve forecasts of consumption during exceptional periods.

Some researchers, however, have suggested that sentiment indexes could be helpful during major economic or political events, as they tend to diverge from a path consistent with other macroeconomic variables in such periods.

Evaluating threshold effects in consumer sentiment

The Dun &Bradstreet Manufacturing Survey is summarized by three composite Industrial Sentiment Indexes (ISIs) covering three different time frames: the coming three months, the past three months, and the coming twelve months.

Manufacturing Expectations at Near-Record Levels; Plans for Price Increases Up Sharply for the Next Three Months

The Dun & Bradstreet Manufacturing Survey is summarized by three composite Industrial Sentiment Indexes (ISIs) covering three different time frames: the coming three months, the past three months, and the coming twelve months.

Manufacturers Cautiously Optimistic about Growth in Production and New Orders through March; Manufacturing executives foresee rising costs and prices over next three months

The Dun & Bradstreet (D&B) Manufacturing Survey is summarized by three composite Industrial Sentiment Indexes (ISIs) covering three different time frames: the coming three months, the past three months, and the coming twelve months.

Manufacturers Report Improved Conditions, But Still Anticipate Slowdown in Coming Months; Prices Hold Steady, With Some Moderation in Cost Increases