Macro Economic Indicators: Consumer Confidence. This report defines the optimism of consumers. Conference Board conducts monthly surveys of 5000 households selected for the assessment of the labor market, conditions for business, and their own assessments about the prospects for an increase in their earnings.
The ground of level is the data taken in 1985. The initial value was equal to «100». Participants in the survey give the answers «better-worse» on several questions: The financial situation of the family compared to the previous period, Expected financial situation of the family during the year Assessment of the business condition of the economy during the year An estimation of the expected unemployment and economic downturn An estimation of home purchases (clothes, household appliances, etc.).
Index is considered to be a relative measure of the number of positive / negative responses. The index of consumer confidence is considered to be a leading indicator of business cycle. It has a limited impact on the market because it can not reflect the real state of the economy.
However, it is traditionally used to predict trends in employment and the overall state of the economy. This index consists of two sub-indices consumers’ evaluation of the current conditions and their expectations of future events. An increase in the index is a positive factor for development of the national economy and leads to an increase in USD.
Significance: Medium
Publication: After the 20th of the month at 10:00 AM (EST).
Source: Conference Board
Web: www.conference-board.org/economics/indicators.cfm
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