United States Consumer Confidence
A lot of questions arise when dealing with consumer confidence facets. Many people wonder whether consumer demand is directly impacted by changes in the consumer confidence. While others wonder whether consumer confidence reflects changes revenue, wealth interest rates or wealth that easily reflects consume demand. Consumer confidence is an economic indicator that makes it easy to measure the degree of assurance that consumers feel about the state of economy in a country and their personal financial status.
Consumer confidence is usually measured by the consumer confidence index [CCI] and presents a great benchmark for determining economy growth. Not many people are confident enough about the stability of their incomes and this affects many decisions that they make. Many people may opt to spend in regards to amount of income that they get while others while others may feel volatile to debts and opt to save. Whenever consumers’ confidence is high, they will most likely spend more.
On the other hand, if consumers’ confidence is low, they will most definitely spend less and save more. Conducting research on consumer confidence offers economists an opportunity to ascertain the consequences of low or high customer confidence. Typically, consumers’ confidence increases when the economy expands and will decrease when the economy deteriorates. Consumer confidence or sentiments vary from one nation to another and analyses obtained from economists in the U.S are amazing.
The overall consumer confidence in the U.S came in at 82.5 in 2014 as per the University of Michigan. United States consumer sentiments averaged 71.68 from 2008 to 2014. Consumer confidence reached the highest peak in the U.S in 2013 and averaged AT 85.10 an average lower than what was recorded in 2008 a low of 55.30. There are numerous factors attributed to these changes in consumer confidence among many United States citizens. These are forces that can also either boost or blunt customer confidence and they include;
- Consumer price index [CPI] falls on yearly basis despite the U.S Government playing great role to increase money supply.
- Inflation affects consumers’ sentiments as many fear increase in bank rates and interest.
- Lack of income gains impacts consumers’ confidence although the U.S Bureau of economics analysis [BEA] said that income grew at a rate of 1.4% in attribute to large roles played by stimulus checks.
- Rising unemployment in United States has blunt consumers’ confidence as may do not have part-time or full-time jobs to rely on for income.
- Increased personal savings rate has also boosted customer sentiments. Spendthrift Americas are no longer spending their income anyhow and many have become little savers.
- Joblessness insurance claims are shrinking and this has led to increased number of jobless America citizens.
Consumer confidence is a great economic indicator and looking at the surveys provided by government officers and bureaus helps statistically quantify consumer sentiments and finances. Any data on consumer sentiments will present a great way to also evaluate individual policies. To help economy grow, it is wise to increase employment and watch consumer confidence pick up regardless of the available job opportunity.
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