Consumer confidence

RECENT NEWS  57 min ago  Comment 
COPENHAGEN (dpa-AFX) - Denmark consumer confidence improved in June after a sharp decline in the previous month, survey data from Statistics Denmark showed Wednesday. The consumer confidence index rose to 4.4 from 3.2 in May. In April, the...  2 hrs ago  Comment 
ANKARA (dpa-AFX) - Turkey's consumer confidence improved for a third straight month in June to its strongest level in six months, figures from Turkstat showed Wednesday. The consumer confidence index climbed to 69.4 from 68.8 in May. The...  Jun 20  Comment 
AMSTERDAM (dpa-AFX) - Dutch consumer confidence improved to a 6-month high in June, survey results from the Central Bureau of Statistics showed Monday. The consumer sentiment index rose to 5 in June from 1 in May. The indicator has remained in...  Jun 17  Comment 
BRUSSELS (dpa-AFX) - Belgium's consumer confidence rose for the first time in seven months in June, survey data from the National Bank of Belgium showed Friday. The consumer confidence rose to -6 from -8 in May, marking the first...  Jun 10  Comment 
WASHINGTON (dpa-AFX) - Reflecting concerns about future economic prospects, the University of Michigan released a report on Friday showing a modest decrease by its reading on U.S. consumer sentiment in the month of June. The report said the...  Jun 10  Comment 
BRUSSELS (dpa-AFX) - After the release of the University of Michigan's preliminary U.S. consumer sentiment index for June at 10 am ET Friday, the greenback changed little against the other major currencies. The greenback was trading at...
Clusterstock  Jun 10  Comment 
The University of Michigan's preliminary consumer sentiment index was higher than forecast in June, but fell from last month's level. The index was 94.3, beating the estimate for 94, and down a hair from 94.7 prior. The survey showed that...  Jun 2  Comment 
BRUSSELS (dpa-AFX) - The Cabinet office is slated to release the Japan consumer confidence index for May at 1:00 am ET Thursday. The index is seen at 40.1, compared to 40.8 in April. Ahead of the data, the yen held steady against its major...
Forbes  Jun 1  Comment 
Prosper’s Consumer Confidence reading is down and the Consumer Spending Forecast is flat. Deborah Weinswig, Managing Director of Fung Global Retail & Technology, provides analysis on why sentiment is soft, as well as where consumer discretionary...


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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