Consumer confidence

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newratings.com  27 min ago  Comment 
BRUSSELS (dpa-AFX) - U.K. GDP and German consumer confidence data are some of the important economic data scheduled for release on Friday. At 2 am ET, market research group GfK is scheduled to release its consumer confidence report for the U.K....
newratings.com  Oct 23  Comment 
BRUSSELS (dpa-AFX) - At 10:00 am ET Thursday, Eurozone consumer confidence for October was released. The euro changed little against its major rivals after the data. The euro was trading at 1.2647 against the greenback, 0.7897 against the...
newratings.com  Oct 23  Comment 
VIENNA (dpa-AFX) - Eurozone's consumer confidence improved unexpectedly in October after weakening in the previous four months, preliminary data from the European Commission showed Thursday. The flash consumer confidence indicator rose to...
Market Intelligence Center  Oct 23  Comment 
As hard as it is to believe, 2014 is coming to an end, which means that investors will shift attention to the upcoming holiday shopping season. Consumer confidence hit pre-recession levels during the summer months, which has set the stage for a...
newratings.com  Oct 20  Comment 
BRUSSELS (dpa-AFX) - Belgium's consumer confidence deteriorated in October after stabilizing at a one-year low in September, survey figures from the National Bank of Belgium showed Monday. The consumer confidence index dropped to -12 from...
newratings.com  Oct 20  Comment 
BRUSSELS (dpa-AFX) - The pound hit a multi-day high against the U.S. dollar in European deals on Monday, extending previous session's strength, as a survey on U.K. consumer confidence climbed to a 3-year high in the third quarter, and house...
newratings.com  Oct 17  Comment 
BRUSSELS (dpa-AFX) - The U.S. dollar moved up against its major rivals in New York deals on Friday, as the U.S. consumer sentiment index rose more-than-expected in October. A preliminary survey by the Reuters/University of Michigan showed that...
Clusterstock  Oct 17  Comment 
Consumer confidence came in at 86.4, beating expectations, according to the  preliminary October report on consumer confidence from the University of Michigan. Expectations were for the reading to fall slightly to 84 from last month's...
WA Business News  Oct 16  Comment 
James Packer says lucky high rollers and weak consumer confidence are hurting Crown's performance.
WA Business News  Oct 15  Comment 
Consumers are starting to feel a little more optimistic, but confidence remains down in the dumps.




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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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