US Consumer Sentiment Index
Consumer Sentiment Index Definition
The Conference Board's Consumer Confidence Index (CCI) is an indicator of how consumers feel about current business conditions and their financial prospects for the next six months.
What Is the Consumer Sentiment Index?
The CCI is based on responses to questions asked during the survey period. The index ranges from -100 to +100 with 0 being neutral. A reading above zero indicates that more consumers view the present as good than bad, while a reading below zero indicates that more consumers see the present as bad than good.
Why Does the Confidence Level Matter?
Consumers who feel confident about the future tend to spend money now rather than saving it. This means that when the economy improves, spending will also improve. If consumers feel less confident about the future, they will save more money and wait until things improve before spending again.
What Are Some Factors That Could Affect the Index?
There are many factors that could affect the index. These include the state of the stock market, unemployment rate, inflation rate, interest rates, and GDP growth.