Consumer confidence

Wall Street Journal  Sep 25  Comment 
Consumers’ enthusiasm about the U.S. economy improved in late September, suggesting worries about global turmoil have eased.
Forbes  Sep 25  Comment 
September economic indicators show that U.S. consumers’ confidence has been shaken a bit, likely due to the stock market correction and continued volatility on Wall Street. Key markers such as confidence, happiness, and the Prosper Spending...
The Economic Times  Sep 25  Comment 
CAC40 gained 1.8% after data showed that a French consumer confidence index at its highest level since October 2007.  Sep 25  Comment 
PARIS (dpa-AFX) - French consumer confidence strengthened in September to the highest level in almost eight years, figures from the statistical office INSEE showed Friday. The consumer confidence index rose to 97 in September from 94 in the...  Sep 24  Comment 
BRUSSELS (dpa-AFX) - German GfK consumer confidence survey data for October is due to be released in the pre-European session on Thursday at 2:00 am ET. The forward-looking consumer sentiment index is seen falling to 9.8 in October from 9.9 in...  Sep 22  Comment 
BRUSSELS (dpa-AFX) - The European Commission has released Eurozone flash consumer sentiment index for September at 10:00 am ET Tuesday. Following the data, the euro changed little against its major rivals. The euro was trading at 1.1144 against...
The Australian  Sep 22  Comment 
A change in the nation’s leader has helped spark a turnaround in consumer confidence.
The Times of India  Sep 21  Comment 
India's consumer confidence appears to have rebounded after a month’s decline, according to a survey by Thomson Reuters and Ipsos, which measures 11 key indicators of consumer confidence and outlook as perceived by consumers aged 16-64 in the...  Sep 21  Comment 
ANKARA (dpa-AFX) - Turkey's consumer confidence decreased sharply in September to the lowest level in fifty-six months, survey results from Turkish Statistical Institute showed Monday. The consumer confidence index fell notably by 6.1...  Sep 18  Comment 
AMSTERDAM (dpa-AFX) - Dutch consumer confidence decreased marginally in September after improving in the previous month, figures from the Central Bureau of Statistics showed Friday. The seasonally adjusted consumer confidence index dropped to 5.0...


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:


  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>[ University of Michigan Consumer Sentiment Index: Survey Information, retrieved 07/25/08]</li> <li id="_note-2">[[#_ref-2|↑]] [ Bureau of Economic analysis, Retrieved 7/30/2008]</li> <li id="_note-3">[[#_ref-3|↑]] [ Why Consumer Confidence Matters?, BBC New, Retrieved 7/20/2008]</li></ol></ref>
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