Consumer Confidence tomorrow 10am

Monday, March 24, 2008

Assessment of consumer sentiment regarding business conditions, employment and personal income. Based on a representative sample of thousands of mail-in surveys, the Conference Board index has the largest pooling sample of any U.S. measure of consumer confidence. Consumer Confidence levels are generally linked with consumer spending. For instance, when consumer confidence is on the rise consumer spending tends to increase. Low or falling consumer confidence on the other hand is typically associated with decreased spending and consumer demand.

Some analysts criticize the Consumer Confidence figure for its volatile tendencies and weak connection to household expenditure, turning instead to the University of Michigan Consumer Confidence numbers. The volatility of the Consumer Confidence figure is attributed to two factors: its pooling size and the survey time frame focus. The Conference Board surveys an entirely new group of people each month, resulting in more erratic month to month figures. Additionally, the survey queries respondents on expectations for the following six months, a relatively short term evaluation. Conversely, the U. Michigan survey will re-poll many individuals and focuses on expectations for the next one to five years. The long term focus has a stabilizing effect on consumer confidence.

Survey results are printed in the headlines where 100 reflects a recent base year.

Relevance: Tends to move markets on release
Release schedule : 10:00 AM (EST); monthly, last Tuesday of the reporting month
Revisions schedule : Minor revisions
Source of report : Conference Board
Web Address : www.conference-board.org
Address of release : http://www.conference-board.org/economics/indicators.cfm Refer > Consumer Confidence Index
AKA : Consumer Confidence Index (CCI)