Consumer confidence

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newratings.com  8 hrs ago  Comment 
LJUBLJANA (dpa-AFX) - Slovakia's consumer confidence worsened in July after improving in the previous month, survey data from the Statistical Office of the Slovak Republic showed Wednesday. The seasonally adjusted consumer confidence index...
newratings.com  11 hrs ago  Comment 
BRUSSELS (dpa-AFX) - German GfK consumer sentiment index for August is due at 2:00 am ET Wednesday. The consumer sentiment index is expected to remain unchanged at 10.1 for August. Ahead of the data, the euro showed mixed trading against its...
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Clusterstock  Jul 28  Comment 
The US rental market is on fire.  On Tuesday morning we got the latest report on rental and homeowner vacancies from the Census Bureau, which showed that rents are soaring and vacancies in the US have plummeted to their lowest level since the...
Wall Street Journal  Jul 28  Comment 
Consumers unexpectedly took a dimmer view of the U.S. economy this month. The Conference Board research group said its index of consumer confidence fell to 90.9 in July from a revised 99.8 in June.
Clusterstock  Jul 28  Comment 
Consumer confidence took a dive this month. The Conference Board's consumer confidence index fell to 90.9 in July, a 10-month low. Economists had estimated that the index fell to 100.0 from 101.4 in June. In the release, the Conference...
WA Business News  Jul 28  Comment 
A renewed steep sell-off on the Chinese share market risks undermining improving levels of consumer confidence in Australia.
newratings.com  Jul 27  Comment 
HELSINKI (dpa-AFX) - Finnish consumer confidence worsened for the second straight month in July to the lowest level in six months, figures from Statistics Finland showed Monday. The consumer confidence index fell to 6.9 in July from 10.8 in June....
Financial Times  Jul 26  Comment 
Survey shows Britain is overtaking global average for first time in nine years




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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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