{"id":566749,"date":"2023-06-02T14:00:17","date_gmt":"2023-06-02T12:00:17","guid":{"rendered":"https:\/\/ftmo.com\/?p=566749"},"modified":"2023-07-04T10:44:53","modified_gmt":"2023-07-04T08:44:53","slug":"consumer-confidence-tells-a-lot-about-the-economy","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/consumer-confidence-tells-a-lot-about-the-economy\/","title":{"rendered":"Economic Calendar – Consumer confidence tells a lot about the economy"},"content":{"rendered":"
Consumer confidence and sentiment data are not based on hard and accurate figures. Nevertherless, they can provide economists and investors with very valuable insights into the state of an economy.<\/span><\/em><\/p>\n GDP, inflation, or labour market figures give economists a clear picture of the state of a country’s or region’s economy at a glance. However, they often come out with a large lag or are subject to significant revisions.<\/p>\n The data on consumer and household sentiment, on the other hand, do not represent exact figures as they are based on a survey of the population. For economists, however, they are a very interesting indicator of how consumer behaviour may evolve and change in the future. When people’s incomes rise at relatively stable prices, they can afford to spend more and their confidence in a “better tomorrow” grows. On the contrary, in times of crisis, high inflation, and unemployment, consumer confidence in the economy tends to decline. And since, for example, in the US, household consumption accounts for up to 70% of the country’s GDP, it is a very important indicator of the direction the economy will take.<\/p>\n One of the most closely watched data on consumer sentiment is the US Consumer Confidence Index (CCI) published by the Conference Board. This is a non-profit organisation that was founded in 1916 in New York (called the National Industrial Conference Board, NICB) against the backdrop of the economic situation that was poor at that time, several tragic events, and growing tensions between large companies and employees. The organisation, whose original aim was to ease tensions between employers and their employees, now comprises more than 1 000 public and private companies and operates in 60 countries.<\/p>\n<\/a><\/p>\n
People’s opinions as a guide for future development<\/h2>\n
CB Consumer Confidence Index<\/h2>\n