Difference between revisions of "Consumer confidence"
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(On August 25, 2020, the Conference Board, which is a New York research organization, announced that its Consumer Confidence Index had declined to 84.8, which is its lowest level since May 2014. This follows a drop to 91.7 in July.) |
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The '''consumer confidence''' index is a monthly survey of [[public]] [[attitude]]s towards the [[economy]]. It is compared to the optimism of the nation in 1985, which was arbitrarily given a score of 100.<ref>http://www.investopedia.com/articles/05/010604.asp#axzz2JOM76wtf</ref> Hence a score below 100 means the public is less confident about the economy, while a score above 100 means the public is more confident. The highest ever recorded response to the consumer confidence index was a 144.7 in January, 2000 during the presidency of [[Bill Clinton]],<ref name="ccirecords">http://www.pollingreport.com/consumer.htm#Conference</ref> with 54% of the households surveyed describing employment opportunities as "plentiful".<ref>https://www.nytimes.com/2000/01/26/news/26iht-usecon.2.t_5.html</ref> By contrast, the lowest ever recorded on the consumer confidence index was a 25.3 in February, 2003 during the [[George W. Bush]] administration.<ref name="ccirecords"/> | The '''consumer confidence''' index is a monthly survey of [[public]] [[attitude]]s towards the [[economy]]. It is compared to the optimism of the nation in 1985, which was arbitrarily given a score of 100.<ref>http://www.investopedia.com/articles/05/010604.asp#axzz2JOM76wtf</ref> Hence a score below 100 means the public is less confident about the economy, while a score above 100 means the public is more confident. The highest ever recorded response to the consumer confidence index was a 144.7 in January, 2000 during the presidency of [[Bill Clinton]],<ref name="ccirecords">http://www.pollingreport.com/consumer.htm#Conference</ref> with 54% of the households surveyed describing employment opportunities as "plentiful".<ref>https://www.nytimes.com/2000/01/26/news/26iht-usecon.2.t_5.html</ref> By contrast, the lowest ever recorded on the consumer confidence index was a 25.3 in February, 2003 during the [[George W. Bush]] administration.<ref name="ccirecords"/> | ||
This monthly report is watched closely by stock market traders and politicians. | This monthly report is watched closely by stock market traders and politicians. | ||
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| + | Consumer spending accounts for 70% of the overall economy activity, and thus a decrease in consumer confidence is detrimental to the [[economy]]. | ||
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| + | On August 25, 2020, the Conference Board, which is a New York research organization, announced that its Consumer Confidence Index had declined to 84.8, which is its lowest level since May 2014. This follows a drop to 91.7 in July. | ||
==References== | ==References== | ||
{{reflist}} | {{reflist}} | ||
| + | [[Category:Economics]] | ||
Revision as of 22:26, August 25, 2020
The consumer confidence index is a monthly survey of public attitudes towards the economy. It is compared to the optimism of the nation in 1985, which was arbitrarily given a score of 100.[1] Hence a score below 100 means the public is less confident about the economy, while a score above 100 means the public is more confident. The highest ever recorded response to the consumer confidence index was a 144.7 in January, 2000 during the presidency of Bill Clinton,[2] with 54% of the households surveyed describing employment opportunities as "plentiful".[3] By contrast, the lowest ever recorded on the consumer confidence index was a 25.3 in February, 2003 during the George W. Bush administration.[2] This monthly report is watched closely by stock market traders and politicians.
Consumer spending accounts for 70% of the overall economy activity, and thus a decrease in consumer confidence is detrimental to the economy.
On August 25, 2020, the Conference Board, which is a New York research organization, announced that its Consumer Confidence Index had declined to 84.8, which is its lowest level since May 2014. This follows a drop to 91.7 in July.