U. of M. Speaks; Wall Street Reacts

Stocks Drop on Consumer Confidence

No, they don't just interview Michigan residents.

From the Federal Reserve Bank of Philadelphia website:

"Consumer confidence surveys measure individual households’ level of confidence in the economy’s performance.
The monthly Survey of Consumers is a nationally representative survey based on approximately 500 telephone interviews with adult men and women living in households in the co-terminous United States (48 states plus the District of Columbia). For each monthly sample, an independent cross-section sample of households is drawn. The respondents chosen in this drawing are then re-interviewed six months later. A rotating panel design results, and the total sample for any one survey is normally made up of 60 percent new respondents and 40 percent being interviewed for the second time."

Interestingly, "Exclusive distribution from Reuters - Effective January 1, 2007, Reuters has the exclusive right to distribute the headline survey index numbers through its news and media services, reaching an estimated 1 billion people a day. Additionally, Reuters is offering a more in-depth view of this important consumer opinion data exclusively to its customers, building on the strong base of current subscribers. The new media partnership and distribution model via Reuters establish a stable source of funding for this important survey and also provide greater transparency and disclosure of the survey results."

So really it is: Michigan Speaks; Reuters Distributes; Wall Street Reacts.