Consumer confidence

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Flightglobal  Jul 21  Comment 
Budget carrier EasyJet is unsure about its fourth-quarter performance following the events in France and Turkey, which have undermined consumer confidence already shaken by the impact of the UK s vote to exit the European Union.
newratings.com  Jul 20  Comment 
VIENNA (dpa-AFX) - Consumer confidence in the 27 European Union countries decreased sharply in July after the "Brexit" vote late last month, while the indicator for the euro area eased moderately, preliminary data from the European Commission...
Benzinga  Jul 20  Comment 
EUR/USD is trading at 1.1008, down 0.0004. The pair is trading rangebound. Market chatter about headline news and the ECB policy meeting on Thursday is making the rounds. The European Commission reported that July Euro area consumer...
newratings.com  Jul 20  Comment 
ANKARA (dpa-AFX) - Turkey's consumer confidence weakened unexpectedly in July as all sub components of sentiment deteriorated from June, survey results from the Turkish Statistical Institute showed Wednesday. The consumer sentiment index...
Wall Street Journal  Jul 19  Comment 
The International Monetary Fund downgraded its forecast for global economic growth as Britain’s vote to leave the European Union weighs on consumer confidence and investor sentiment.
The Hindu Business Line  Jul 17  Comment 
At this stage the economy needs to start picking up and consumer confidence is not very high
newratings.com  Jul 15  Comment 
WASHINGTON (dpa-AFX) - With high income households expressing concerns about the prospects for the economy, the University of Michigan released a report on Friday showing a notable deterioration in U.S. consumer sentiment in the month of...
newratings.com  Jul 15  Comment 
BRUSSELS (dpa-AFX) - After the release of the University of Michigan's preliminary U.S. consumer sentiment survey for July at 10 am ET Friday, the greenback changed little against the other major currencies. The greenback was trading at...
guardian.co.uk  Jul 15  Comment 
Bus operator says fewer consumers are visiting high street as engineering works dent rail division growth Bus and train operator FirstGroup has warned that its UK business is likely to be hit by weakening consumer confidence after the decision to...
guardian.co.uk  Jul 14  Comment 
Threadneedle Street surprises City with 8-1 vote to leave rate and QE unchanged despite collapse in business and consumer confidence The Bank of England has held interest rates at 0.5%, confounding City analysts who expected a recent collapse in...




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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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