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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CONSUMER PRICE INDEX: Down Mid-Year 2024

Posted on July 13, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

INFLATION EASING

By Staff Reporters

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For the first time since May 2020, the average cost of goods and services in the US made like a remote worker with wanderlust and dipped last month, the Labor Department just reported in July 2024, bolstering confidence that inflation is easing.

Carried by softening gas and rent prices, the consumer price index (CPI) decreased 0.1% in June, beating economists’ forecasts of a 0.1% monthly increase.

  • That dip brought down the annual CPI, which also beat expectations, to record a 3% year over year gain in June—a one-year price growth low and a rate last seen in early 2021.
  • Average gas prices fell 3.8% in June, after dropping 3.6% in May.
  • Shelter prices, which account for about one-third of the CPI, only rose 0.2% in June as rents cooled. It was the category’s smallest monthly rise in three years.

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CONSUMER CONFIDENCE: Up!

Posted on November 30, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Consumer confidence rose for the first time in four months

The Consumer Conference Board’s index rose from 99.1 in October to 102 in November thanks to US consumers’ optimism around short-term income, hiring prospects, and the slowdown in inflation. The perceived likelihood of a recession also fell to the lowest level of 2023—though two-thirds of Americans still think one is either “somewhat” or “very likely” to happen in the next year.

The improved economic outlook comes after home prices rose to a new record in September, even as mortgage rates remained elevated.

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