Consumer confidence

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All the day’s economic and financial news, including a new update from the Bank of England into the health of the UK financial system at 10.30am BST Latest: Mario Draghi speaking now The agenda: BoE Financial Stability Report today Bank may...
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LONDON — New data show consumer confidence has slumped in the wake of the UK's hung parliament, and is only marginally higher than it was in the immediate aftermath of the UK's vote to leave the European Union. The latest the Consumer...
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Hung parliament, pay squeeze and housing slowdown took consumers’ spirits to lowest level since Brexit vote, says poll Consumer confidence slumped in the 12 days after the general election to its lowest level since the aftermath of last...
The Hindu Business Line  Jun 26  Comment 
US data due this week include the June consumer confidence indicator, pending home sales, crude oil inventories, revised first quarter GDP and the PCE price index
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Now it has to repair its repairs.
CNNMoney.com  Jun 16  Comment 
Americans still feel good about the Trump economy, but they are cooling to it.
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The GBP/USD currency pair today rallied higher briefly after the release of weak US consumer confidence data during the North American session. The currency pair did not build on the upward momentum established during yesterday’s session...




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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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