How to use Consumer Sentiment Reports in online forex trading ?

The consumer index sentiment (ICS) is a survey related to economic events, and it is published every month. The purpose of releasing this report is to measure the confidence level of consumer in the US economy.
Almost 70% of production and expenditures of the U.S. economy is connected with consumer spending and private consumption. This mainly includes utilities, retail sales, and health care. All of these comprise the majority part of the economy and hence its accuracy in numbers usually affects the numbers of some other key factors like inflation, employment, and interest rates. Interest rates, wealth, and income are the factors that push a consumer towards purchasing. Thus, if we combine all these factors with ICS, we can predict the level of consumer expenditures for the future.
The official survey of ICS is composed of different category of a question being asked in the best possible way and through this, the whole index is being aggregated into a total of five questions.
Through the estimation of consumer confidence, we can definitely predict the future consumption. This is because there is a positive correlation the economic outcome of the future and consumer thinking. However, an unexpected economic event can suddenly change things. Issues like war, a sudden increase in oil prices, and above all natural disasters can cause a heavy damage to a country’s economy. All of these can directly affect the confidence level of the consumer.
Usually, the markets keep an eye on the ICS index, and in case if there is a sudden situation of chaos in the economy, then it will lead to the increase in the price of a dollar. Otherwise, the ICS index is used with another useful U.S. economic data for the future prediction.