Consumer confidence

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Forbes  Jan 22  Comment 
2014 has been a hard period for the company in terms of operations and financial performance. Even though the Golden Arches dominated the restaurant market in 2014 with a 17% value share, boosted by its coffee portfolio and value meals, there were...
The Australian  Jan 21  Comment 
CHINESE consumer confidence has fallen for the second consecutive month, as the economy continues its slowdown according to a private survey.
Wall Street Journal  Jan 20  Comment 
Economists at the International Builders Show said that while 2014 proved disappointing they expect construction and home buying to accelerate in 2015, driven by strong job growth and improving consumer confidence.
Forbes  Jan 19  Comment 
Despite lingering challenges, consumer confidence is on the rise, fueling accelerated expansion in the restaurant industry in 2015, especially for upscale chains.
Bloomberg  Jan 19  Comment 
Asian Stocks Rise After Oil Surge Boosts S&P 500 Index Asian stocks climbed, led by mining shares, after U.S. oil capped its first weekly advance since November and American...
Clusterstock  Jan 16  Comment 
Consumer confidence is on fire. The preliminary read on consumer confidence in January came in at 98.2, the highest since 2004. Expectations were for the reading to come in at 94.1, up from the final 93.6 reading in December. The assessment...
MarketWatch  Jan 16  Comment 
Treasury yields moves higher Friday, on track to end five-straight sessions of declines, as the University of Michigan says consumer confidence in the U.S. rose to its highest level since 2004.
The Hindu Business Line  Jan 9  Comment 
Consumer confidence has been falling for 4 months in a row, finds survey




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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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