CONSUMER CONFIDENCE INDEX: Six Month High!

Posted on August 30, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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DEFINITION: Consumer confidence index (CCI) is a standardized confidence indicator providing an indication of future developments of households’ consumption and saving.

The index is based upon answers regarding household’s expected financial situation, their sentiment about the general economic situation, unemployment and capability of savings. An indicator above 100 signals a boost in the consumers’ confidence towards the future economic situation, as a consequence of which they are less prone to save, and more inclined to spend money on major purchases in the next 12 months. Values below 100 indicate a pessimistic attitude towards future developments in the economy, possibly resulting in a tendency to save more and consume less.

CITE: https://www.r2library.com/Resource

This indicator is measured as an amplitude adjusted index, long-term average = 100.

MORE: https://medicalexecutivepost.com/2024/08/28/

US consumer confidence hits a six-month high

The decline in inflation and the expectation of an imminent interest rate cut have Americans feeling better about the economy than they have in a while, according to the latest update of the Conference Board’s consumer confidence index [CCI].

On the other hand, consumers are worried about the softening labor market. While the unemployment rate remains below historical standards at 4.3%, it has increased for four straight months—likely enough to convince J. Powell and the Federal Reserve to cut rates in September.

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CCI: Consumer Confidence Index?

Posted on August 28, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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A consumer confidence index (CCI) is an economic indicator published by various organizations in several countries.

In simple terms, increased consumer confidence indicates economic growth in which consumers are spending money, indicating higher consumption. Decreasing consumer confidence implies slowing economic growth, and so consumers are likely to decrease their spending.

CITE: https://www.r2library.com/Resource/Title/082610254

The idea is that the more confident people feel about the economy and their jobs and incomes, the more likely they are to make purchases. Declining consumer confidence is a sign of slowing economic growth and may indicate that the economy is headed into trouble.

FOR EXAMPLE:

Consumers’ assessment of current business conditions was mixed in November, 2022.

  • 18.2% of consumers said business conditions were “good,” up from 17.7%.
  • On the other hand, more consumers, 26.7%, said business conditions were “bad,” up from 24.0%.

Consumers’ appraisal of the labor market was somewhat more favorable.

  • 45.8% of consumers said jobs were “plentiful,” up from 44.8%.
  • 13.0% of consumers said jobs were “hard to get,” unchanged from last month.

OFFICIAL: https://www.conference-board.org/topics/consumer-confidence

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