Consumer confidence

Forex News  5 hrs ago  Comment 
Positive consumer confidence data allowed the New Zealand dollar to rally ahead of policy decisions from the Federal Reserve and the Reserve Bank of New Zealand.(...)Read the rest of NZ Dollar Rallies Ahead of Policy Decisions (72 words)...  10 hrs ago  Comment 
LJUBLJANA (dpa-AFX) - Slovakia's consumer confidence increased in October, data from the Statistical Office of the Slovak Republic showed Wednesday. The consumer confidence index rose to -14.5 in October from -15.9 in September. Among the...  Oct 29  Comment 
VIENNA (dpa-AFX) - European stocks are set to open higher on Wednesday, buoyed by a surge in U.S. stocks overnight and a firm trend in Asia this morning, as investors digested upbeat U.S. consumer confidence data and look for reassurance from the...  Oct 29  Comment 
Reuters  Oct 29  Comment 
* Stockpiles up by 2.1 mln barrels vs forecast build of 3.4 mln
Clusterstock  Oct 29  Comment 
By Susan Fenton LONDON, (Reuters) - Consumer confidence in the United States jumped in the third quarter and improved globally, although people were more optimistic about job prospects than their personal finances, a survey showed on...
WA Business News  Oct 29  Comment 
The Australian share market has opened higher after Wall Street rose on upbeat US consumer confidence.
Yahoo  Oct 28  Comment 
U.S. stocks zipped 1% higher Tuesday as traders cheered upbeat consumer confidence data and corporate earnings. The broad S&P 500 is now up more than 2% for the year.  Oct 28  Comment 
NEW YORK (TheStreet) -- Heading into the final hour of trading U.S. stocks were at session highs after a report from the Conference Board showed consumer confidence hit a seven-year high, bolstering investors’ outlook for upcoming the holiday...
New York Times  Oct 28  Comment 
Demand for U.S.-made capital goods recorded its biggest drop in eight months in September, a cautionary note for an economy that otherwise seems to be moving forward at a steady clip.
MarketWatch  Oct 28  Comment 
The dollar inches higher against the yen after data on durable-goods orders and consumer confidence.


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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