Consumer confidence

RECENT NEWS
newratings.com  Jul 29  Comment 
WASHINGTON (dpa-AFX) - While the University of Michigan released a report on Friday showing an upward revision to its consumer sentiment index for July, the index still came in below the reading seen in the previous month. The report said the...
Clusterstock  Jul 29  Comment 
Consumer confidence rose less than expected. The University of Michigan's final consumer sentiment index for July came in at 90.0. Economists were expecting the final index to rise slightly to 90.2 in July, according to the Bloomberg...
Benzinga  Jul 29  Comment 
GBP/USD is trading at 1.3163, up 0.0002. The pair is trading choppy and just above the session lows. Market chatter about Bank of England monetary policy and global money flows is making the rounds. GFK reported that U.K. consumer...
newratings.com  Jul 29  Comment 
LONDON (dpa-AFX) - Consumer confidence in the United Kingdom plunged in July, the latest survey from GfK revealed on Friday with an index score of -12. That was well shy of forecasts for -8 after coming in at -1 in May. The forecast for personal...
guardian.co.uk  Jul 28  Comment 
Economic outlook has hit household and manufacturing confidence, with index showing sharpest month-to-month drop since 1990 Growing worries about the economic outlook have dented the confidence of UK households and manufacturers, according to the...
newratings.com  Jul 28  Comment 
LISBON (dpa-AFX) - Portugal's consumer confidence decreased for the second straight month in July, while economic sentiment improved, figures from Statistics Portugal showed Thursday. The consumer confidence index fell to -13.0 in July from...
Benzinga  Jul 28  Comment 
EUR/USD is trading at 1.1104, up 0.0038. The pair is trading choppy and a little under the session highs. Market talk about economic data and money flows has kept both buyers and sellers active. The European Commission reported...
Benzinga  Jul 27  Comment 
EUR/USD is trading at 1.0999, up 0.0013. The pair is trading near session highs. Market talk about European economic data and headline news has kept buyers and sellers active in a narrow range. Italy's ISTAT reported that July business...
newratings.com  Jul 27  Comment 
HELSINKI (dpa-AFX) - Finland's consumer confidence decreased in July after improving in the previous two months, figures from Statistics Finland showed Wednesday. The consumer confidence index fell to 13.1 in July from June's 13-month...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

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>
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki