Consumer confidence

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newratings.com  7 hrs ago  Comment 
LJUBLJANA (dpa-AFX) - Slovenia's consumer confidence worsened in February, after improving in the previous three months, figures from the Statistical Office of the Republic of Slovenia showed Monday. The seasonally adjusted consumer...
newratings.com  9 hrs ago  Comment 
COPENHAGEN (dpa-AFX) - Denmark's consumer confidence strengthened for a second straight month in February as households' expectations regarding the national as well as personal economic situation improved further, survey data from...
newratings.com  11 hrs ago  Comment 
AMSTERDAM (dpa-AFX) - Dutch consumer confidence strengthened further in February to the strongest level in nine-and-a-half years, while spending growth eased slightly in December, figures from the Central Bureau of Statistics showed Monday. The...
Clusterstock  Feb 19  Comment 
It looks like this bull market just won't quit. Friday marked the 2,003 trading day since the stock market rally began back in 2009, making it even longer than the bull market that preceded the 1929 crash. And since President Donald Trump's...
MarketWatch  Feb 15  Comment 
Most U.S. retailers posted strong sales in January, even beleaguered department stores, perhaps a sign that higher consumer confidence since the election has encouraged Americans to spend more, at last temporarily. Retail sales rose 0.4% last month.
newratings.com  Feb 10  Comment 
WASHINGTON (dpa-AFX) - After showing U.S. consumer sentiment at a thirteen-year high in the previous month, the University of Michigan released a report on Friday showing that consumer sentiment has pulled back by more than expected in...
Clusterstock  Feb 10  Comment 
Various measures of US consumer confidence have spiked since the election in November.  But for the first time since October, the University of Michigan's survey of consumers showed a drop in expectations for economic growth.  The...
MarketWatch  Feb 8  Comment 
Rising consumer confidence in a time of record stock prices and deflationary pressures are just some of the scary things BlackRock Chief Executive Larry Fink sees on the horizon.




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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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