Consumer confidence

RECENT NEWS  5 hrs ago  Comment 
Company positive about outlook after half year revenues rise 12% Persimmon has become the latest business to confirm that consumer confidence held up ahead of the UK general election, despite concerns that the closeness of the opinion polls -...
New York Times  Jun 30  Comment 
The Standard & Poor’s/Case-Shiller 20-city home price index rose 4.9 percent in April from 12 months earlier, about the same annual pace as March.
Yahoo  Jun 30  Comment 
U.S. consumer confidence increased solidly in June, with households upbeat about the labor market, supporting views the economy was back on firmer footing after wobbling at the start of the year. The rise in confidence came despite moderate...
Wall Street Journal  Jun 30  Comment 
Clusterstock  Jun 30  Comment 
Consumers are feeling great about the US economy. The latest reading of the consumer confidence index came in at 101.4, crushing forecasts. Economists had expected an index print from the Conference Board of 97.4 for June, up from 95.4 last...
Benzinga  Jun 30  Comment 
The Conference Board is set to release Consumer Confidence at 10 a.m. ET, with expectations for a reading of 97.4. Consensus estimates range from 94.5 to 99.0 according to Bloomberg. The expected 97.4 reading would top last month's level of 95.4...  Jun 29  Comment 
LONDON (dpa-AFX) - Consumer confidence in the United Kingdom surged in June, the latest survey from marketing research company GfK revealed on Tuesday, with an index score of +7. That handily beat forecasts for a reading of +2, and it was up from...
Financial Times  Jun 29  Comment 
Shoppers in ‘sweet spot’, with low inflation, unemployment falling and wages starting to rise  Jun 29  Comment 
LJUBLJANA (dpa-AFX) - Slovakia's consumer confidence improved in June, after falling to its lowest level nearly two years in the previous month, survey data from the Statistical Office of the Slovak Republic showed Monday. The seasonally...  Jun 29  Comment 
HELSINKI (dpa-AFX) - Finland's consumer confidence worsened for the first time in nine months in June to the lowest level in four months, figures from Statistics Finland showed Monday. The consumer confidence index fell to 10.8 in June from...


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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