Consumer confidence

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Benzinga  Aug 23  Comment 
EUR/USD is trading at 1.1320, up 0.0004. The pair is trading rangebound and some of the early session gains have eroded. Market chatter about global headline news and economic data is making the rounds. The European Commission reported...
newratings.com  Aug 23  Comment 
VIENNA (dpa-AFX) - Eurozone consumer confidence deteriorated for a third straight month in August to its lowest level since April, defying expectations for a rebound, preliminary figures from the European Commission showed Tuesday. The flash...
newratings.com  Aug 23  Comment 
BRUSSELS (dpa-AFX) - Following the release of Eurozone flash consumer sentiment index for August at 10:00 am ET Tuesday, the euro traded mixed against its major rivals. While the euro held steady against the pound and the yen, it inched down...
newratings.com  Aug 23  Comment 
COPENHAGEN (dpa-AFX) - Denmark's consumer confidence improved in August to the highest level in four months, figures from Statistics Denmark showed Tuesday. The consumer confidence index climbed to 4.8 in August from 3.1 in July. In June,...
newratings.com  Aug 23  Comment 
ANKARA (dpa-AFX) - Turkey consumer confidence strengthened for the first time in two months in August, defying expectations for further deterioration, survey data from Turkstat showed Tuesday. The consumer confidence index climbed to 74.4 from 67...
newratings.com  Aug 19  Comment 
BRUSSELS (dpa-AFX) - Belgium's consumer confidence remained unchanged in August, survey data from the National Bank of Belgium showed Friday. The consumer confidence index remained unchanged at -4. A higher reading of -3 was last recorded...
newratings.com  Aug 18  Comment 
AMSTERDAM (dpa-AFX) - Dutch consumer confidence improved slightly in August, while spending grew at a weaker pace in July, figures from the Central Bureau of Statistics showed Thursday. The seasonally adjusted consumer confidence index rose to...
Clusterstock  Aug 12  Comment 
Consumer confidence rose less than expected in August.  The University of Michigan's preliminary reading for the month rose to 90.4, less than the bump expected by economists.  Expectations were for the reading to rise to 91.5, up modestly...
Benzinga  Aug 10  Comment 
AUD/USD is trading at 0.7721, up 0.0059. The pair is trading at the best level since late April. Market chatter about Australian economic data is making the rounds. The Westpac-Melbourne Institute Australian Consumer Sentiment for August...




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Consumer confidence is a term for consumers' level of optimism about the economy. It is used to capture people's perception, rather than the actual state, of the economy. Consumer confidence affects consumption, which accounted for 74% of the US Gross Domestic Product in the first quarter of 2008.[1] This is because people tend to adjust their spending based of expectation of the future. Factors such as changes in employment levels, increase/decrease in gasoline prices, inflation expectations and major events, e.g. terrorist attacks, hurricanes and ending a war, affects consumer confidence. Consumer confidence tends to vary from country to country.

Measures of Consumer Confidence

[[Image:Mich_cc.jpg|right|thumb|450px|University of Michigan Consumer Sentiment Index (Jan 1978- Jan 2008)[2]

Who is affected by changes in consumer confidence

Consumer confidence affects consumption, which accounted for 74% of the US Gross Domestic Product in the first quarter of 2008.[3] This is because people tend to adjust their spending based of expectation of the future. Lower consumer confidence, leads to lower overall spending and vice versa. Economists have concluded that spending on durable goods, such as cars and computers, is affected more than spending on non-durable goods, such as food -- since, consumers tend to put off the high budget items till they feel comfortable about purchasing them.[4] High consumer confidence bodes well for almost all types of businesses.

The type of businesses that are affected most by changes in consumer confidence are:

The type of businesses that are affected least by changes in consumer confidence are:

References

  1. Bureau of Economic analysis, Retrieved 7/30/2008
  2. Data from University of Michigan, retrieved 7/30/2008</ref two studies: The US Consumer Confidencitions for the next six months, current employment conditions, employment conditions for the next six m The University of Michigan Consumer Sentiment Index, calculated and published by the University of Michigan each month, is measured by conducting a phone survey of at least 500 households. The survey contains 50 questions focusing on three broad areas: personal finances, business conditions, and buying conditionber of 1964.<ref>[http://www.sca.isr.umich.edu/documents.php?c=i University of Michigan Consumer Sentiment Index: Survey Information, retrieved 07/25/08]</li> <li id="_note-2">[[#_ref-2|↑]] [http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=5&FirstYear=2007&LastYear=2008&Freq=Qtr Bureau of Economic analysis, Retrieved 7/30/2008]</li> <li id="_note-3">[[#_ref-3|↑]] [http://news.bbc.co.uk/1/hi/business/1561162.stm Why Consumer Confidence Matters?, BBC New, Retrieved 7/20/2008]</li></ol></ref>
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