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How do you measure consumer confidence?
Since consumer spending is so important to the nation's financial health, the Consumer Confidence Index is one of the most accurate and closely watched economic indicators. The index is based on a survey of five questions posed to 5,000 households, measuring their optimism on the economy's health.
What is the current level of consumer confidence?
Current Index The Consumer Confidence Board reported the Index was 130.7 in February 2020. That's higher than the January level. Both are better than the pre-recession high of 111.9 reached in July 2007. And both are lower than the 137.9 recorded in October 2018.
What is the current consumer confidence?
Current Index The Consumer Confidence Board reported the Index was 130.7 in February 2020. That's higher than the January level. Both are better than the pre-recession high of 111.9 reached in July 2007. And both are lower than the 137.9 recorded in October 2018.
Is consumer confidence high or low?
When consumer confidence is high, consumers make more purchases. When confidence is low, consumers tend to save more and spend less.
What is the consumer confidence index based on?
The Consumer Confidence Index (CCI) is based on the premise that if consumers are optimistic, they will spend more and stimulate the economy but if they are pessimistic then their spending patterns could lead to a recession.
What happens when consumer confidence increases?
An increase in consumer confidence causes an increase (rightward shift) of the aggregate demand curve. A decrease in consumer confidence causes a decrease (leftward shift) of the aggregate demand curve. If buyers find that they “like” a good more, then their demand increases.
What does a negative consumer confidence index mean?
Declining consumer confidence is a sign of slowing economic growth and may indicate that the economy is headed into trouble. Each month The Conference Board surveys 5,000 US households.
What does consumer confidence index mean?
Consumer confidence, measured by the Consumer Confidence Index (CCI), is defined as the degree of optimism about the state of the economy that consumers (like you and me) are expressing through their activities of saving and spending.
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