Consumer confidence

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Channel News Asia  Sep 5  Comment 
Analysts said this could be due to a pullback following the Great Singapore Sale, as well as perceptions of declining wealth as property values soften. 
The Economic Times  Sep 5  Comment 
Whether it's consumer confidence, business confidence or investor confidence, there is a confluence of positives, says Dipen Sheth.
newratings.com  Sep 5  Comment 
PARIS (dpa-AFX) - Consumer confidence in France remained unchanged for the third consecutive month, defying expectations of a decrease, in August, figures from the statistical office Insee showed Friday. The consumer sentiment index was at 86 in...
Wall Street Journal  Sep 4  Comment 
Thailand's consumer confidence improved again in August, reflecting improved political stability and a generally positive economic outlook.
WA Business News  Sep 4  Comment 
Consumer confidence among Western Australian shoppers has only marginally improved in the last quarter, a Curtin Business School Chamber of Commerce and Industry WA survey of consumer confidence says.
BBC News  Sep 3  Comment 
The CBI business lobby group says it expects UK economic growth to slow in the second half of this year as the impact of improved business and consumer confidence starts to ease.
TheStreet.com  Sep 3  Comment 
NEW YORK (TheStreet) — Consumer confidence rose again last month. But slowing home values could put a dent in that confidence, especially if that slowdown becomes a decline in the final months of 2014. The Conference Board's confidence index...
BBC News  Sep 2  Comment 
Japanese wages unexpectedly log their strongest increase since 1997, which may provide a boost to consumer confidence and spending.
newratings.com  Aug 29  Comment 
BRUSSELS (dpa-AFX) - The Reuters/University of Michigan's final consumer sentiment index for August is due at 9:55 am ET Friday. Ahead of the data, the greenback rose against the franc, the yen and the euro but held steady against the...




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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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