Consumer Confidence
Consumer confidence is an economic indicator that measures the level of optimism that consumers have in the overall health of the economy. It is based on surveys of consumer attitudes and spending intentions. Consumer confidence is an important indicator of economic health because consumer spending accounts for a large portion of the total economic activity. When consumers are feeling confident about the economy, they are more likely to make purchases, which can lead to increased economic growth. Conversely, when consumer confidence is low, consumers are less likely to make purchases, which can lead to a slowdown in economic growth.
History of Consumer Confidence
The concept of consumer confidence has been around since the early 1900s. The first consumer confidence survey was conducted in the United States in the 1920s. The survey was conducted by the National Bureau of Economic Research (NBER) and was designed to measure consumer attitudes towards the economy. The survey was conducted on a quarterly basis and was used to gauge consumer sentiment about the economy. Over time, the survey has evolved and is now conducted on a monthly basis by the Conference Board, a private research organization.
Comparison of Consumer Confidence
| Year | Consumer Confidence Index |
|---|---|
| 2020 | 90.9 |
| 2019 | 125.5 |
| 2018 | 128.1 |
| 2017 | 114.6 |
Summary
Consumer confidence is an important economic indicator that measures the level of optimism that consumers have in the overall health of the economy. It is based on surveys of consumer attitudes and spending intentions and is an important indicator of economic health. The first consumer confidence survey was conducted in the United States in the 1920s and is now conducted on a monthly basis by the Conference Board. For more information about consumer confidence, you can visit the Conference Board website or the Federal Reserve website.
See Also
- Gross Domestic Product (GDP)
- Unemployment Rate
- Inflation Rate
- Interest Rates
- Consumer Price Index (CPI)
- Retail Sales
- Housing Starts
- Manufacturing Activity
- Stock Market
- Consumer Spending
