Consumer confidence

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The Straits Times  Jan 30  Comment 
January 31, 2015 1:17 AM A STRONGER greenback is going to lift United States consumer confidence and continue to fuel the stock market rally, according to assset management firm Fidelity Worldwide Investment.
Wall Street Journal  Jan 30  Comment 
U.S. consumers are feeling upbeat about the economy, according to data released Friday. The optimism could keep consumer spending on a rising trend.
MarketWatch  Jan 30  Comment 
The final read on the University of Michigan's consumer sentiment index was 98.1, down a tick from the 98.2 in the preliminary estimate. That's still above the 93.6 mark in December and the best reading in 11 years. Market Pulse Stories are...
The Economic Times  Jan 30  Comment 
Sterling rose 0.1 per cent at $1.5070, while it was slightly lower against the euro. The euro was up 0.1 per cent at 75.25 pence.
Automotive World  Jan 29  Comment 
Thanks to elevated consumer confidence, US dealers are now more worried about the availability of models than they are economic concerns The post US dealer concerns shift from economy to product availability appeared first on Automotive World.
Market Intelligence Center  Jan 27  Comment 
After the open… It's icy on Wall Street today. Stocks are down across the board in early trading after earnings misses from Microsoft (MSFT) and Caterpillar (CAT) have caused more traders to accept that yes, this is a really bad earnings season....
Wall Street Journal  Jan 27  Comment 
U.S. consumers turned exceedingly upbeat about the economy at the start of 2015, with the Conference Board’s index of consumer confidence hitting its highest level since August 2007.
Yahoo  Jan 27  Comment 
U.S. consumer confidence strengthened to its highest level in more than seven years in January on growing optimism about the jobs market and the overall economy, according to a private sector report released ...
Clusterstock  Jan 27  Comment 
The consumer is confident. The Conference Board's consumer confidence index surged to 102.9 in January from 93.1 a month ago. This was much stronger than the 95.5 expected by economist. "Consumer confidence rose sharply in January, and is...




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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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