-- =DJ UPDATE:Reuters To Distribute Univ Of Mich Sentiment Data --
(Adds that current subscribers will continue to have access to the report and
that the preliminary and end-month release of the survey will be maintained)

   By Laurence Norman and Michael S. Derby
   Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Reuters Group PLC (RTRSY) and the University of Michigan
announced Wednesday an agreement that gives the media company distribution
rights for the university's closely-watched consumer sentiment survey.
The agreement will give broad access to the twice-monthly report, one of two
main U.S. consumer confidence indicators. Until now, the report has been
released only to subscribers, and has appeared on financial news services after
being leaked by market participants.
Reuters said it will publish the survey's key numbers on its public Web site
and to paid subscribers.
The agreement goes into effect Jan. 1, 2007, according to joint press release.
The survey will continue to be conducted by the University of Michigan but will
be renamed the Reuters/University of Michigan Surveys of Consumers.
Diane Swanbrow, a spokesperson for the University of Michigan's Institute for
Social Research, said the agreement will last for three years.
For the first six months, Reuters will have exclusive rights to distribute the
headline numbers in the survey. Thereafter, the data will also be archived at
the University of Michigan Inter-University Consortium for Political and Social
Research.
The headline numbers, which include the overall index for consumer sentiment,
the index for current economic conditions, for future expectations and the one-
and five-year inflation expectations, will be publicly available.
In addition, Reuters said it will release more in depth information, including
expectations for changes in unemployment and interest rates as well as
information on projected consumer demand for houses and other large purchases.
A Reuters spokesman said the current subscribers to the Michigan survey will
continue to enjoy full access to the data once the new agreement comes into
effect.
Swanbrow did not say how much Reuters paid for distribution rights, however,
she said "the value of the sponsorship will cover the cost of conducting the
research, which is more than $1 million" each year. Reuters declined to comment
on how much they paid for distribution rights.
Swanbrow said that in addition to covering the university's costs, the data's
distribution through Reuters will "provide greater transparency" and will "allow
all investors to have access to the key index figures at the same time."

   End Of The Affair

The University of Michigan survey has a controversial history. Its restricted
status and unauthorized appearance in press reports led to a serious campaign by
the group to control its release.
There was also an episode in spring of 2004 when Richard Curtin, the director
of the survey, told subscribers there had been an "unauthorized access and
public release" of the sentiment data. The alleged breach was investigated by
the Federal Bureau of Investigations and by University of Michigan.
At the time, Curtin blamed the alleged intrusion on an unnamed news
organization. Later that year, the FBI ended its investigation, claiming a lack
of evidence.
The Michigan data has also had a long history of moving financial markets, a
reality that may stem more from its unusual release pattern than the importance
of its findings. While the bond market has from time to time shown big swings on
unexpected Michigan readings, most Federal Reserve officials have downplayed the
data's significance. Meanwhile, economists have noted the survey's poor
correlation with spending patterns.
Federal Reserve Bank of Minneapolis President Gary Stern said earlier this
month of sentiment surveys like Michigan: "I don't think it's useful as a
forecasting device." He added that he prefers to see indicators of real economic
activity as he goes about his decision making process.
The Reuters spokesman said there will be no changes in the report's future
presentation. The University of Michigan will continue to release a preliminary
mid-month consumer sentiment report and then a final report at month end.

   -By Laurence Norman and Michael S. Derby, Dow Jones Newswires; 201-938-2096;
laurence.norman@dowjones.com

(END) Dow Jones Newswires
07-26-06 1311ET
Copyright (c) 2006 Dow Jones & Company, Inc.(AP-DJ-07-26-06 1711GMT)