Consumer confidence

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Resource Investor  Nov 14  Comment 
Copper futures capped the biggest gain in two months as consumer confidence reached a seven-year high in the U.S., the world’s second-biggest consumer of the metal.
Clusterstock  Nov 14  Comment 
Consumer confidence is roaring. The preliminary reading on consumer confidence from the University of Michigan came in at 89.4, well above expectations and the highest reading since July 2007.  Expectations were for the report to show...
newratings.com  Nov 11  Comment 
TOKYO (dpa-AFX) - Consumer confidence in Japan decreased unexpectedly in October, data from the Cabinet Office showed Tuesday. The consumer confidence index fell to 38.9 in October from 39.9 in September. Economists had expected the index to rise...
The Australian  Nov 11  Comment 
THE sharemarket ended slightly softer, after surveys showed economic woes continuing to weigh on business and consumer confidence.
Channel News Asia  Nov 10  Comment 
However, while consumer confidence is rising, more Singaporeans say they want to put their spare cash into savings compared to the same time last year, according to the Nielsen Survey of Consumer Confidence and Spending Intentions.
newratings.com  Nov 6  Comment 
BRUSSELS (dpa-AFX) - Swiss consumer sentiment weakened more than expected in October, a quarterly survey data from the State Secretariat for Economic Affairs, or SECO showed Thursday. The consumer confidence index fell to -11 in October from -1...
newratings.com  Nov 6  Comment 
BRUSSELS (dpa-AFX) - Switzerland's State Secretariat for Economic Affairs, or SECO, is scheduled to release its consumer confidence index for October at 1:45 am ET Thursday. Economists forecast the indicator to decline to -5 in October from...
guardian.co.uk  Nov 5  Comment 
Deutsche Bank cuts from buy to hold on consumer confidence and currency concerns B&Q owner Kingfisher is under pressure on concerns about weak consumer demand, amid talk that people are falling out of love with DIY. Last month Homebase announced...
The Economic Times  Nov 5  Comment 
'Most measures of confidence have gone up. Business confidence, consumer confidence, rating agencies, S&P -- all have gone up.'
The Australian  Nov 4  Comment 
ACTIVITY in the services sector has fallen for an eighth consecutive month, weighed down by slow wages growth and weak consumer confidence.




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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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