What is the 'Consumer Confidence Index - CCI'
An index by the Conference Board that measures how optimistic or pessimistic consumers are with respect to the economy in the near future. The idea behind the Consumer Confidence Index (CCI) is that if consumers are optimistic, they tend to purchase more goods and services. This increase in spending inevitably stimulates the whole economy.
BREAKING DOWN 'Consumer Confidence Index - CCI'
The index is put out the last Tuesday of every month. It is a barometer of the health of the U.S. economy and based on consumers' perception of current business and employment conditions, and expectations of those two plus income for the next six months. It is conducted for The Conference Board by Nielsen, a global provider of information and analytics regarding consumers' buying and watching habits.
The Consumer Confidence Index is based on the Consumer Confidence Survey, which is a survey of 5,000 households. The survey was started in 1967 and conducted every two months. It changed to monthly tracking in 1977. There are five questions asked: two related to present economic conditions and three about future expectations. Each response can be answered with three options: positive, negative or neutral. There is also a Present Situation Index, which is an average of the two questions related to current economic conditions. An Expectations Index is based on responses to the other three questions. The index was set to 100 in 1985.
A Leading Indicator
The CCI is a leading economic indicator for the U.S. economy. The Organization for Economic Co-operation and Development (OECD) considers consumer confidence a leading indicator. Leading indicators provide qualitative information used to monitor the current economic situation and seek to provide advance warning of turning points in economic activity.
The Conference Board
The Conference Board is a global, independent business membership and research association. Its mission is to provide the world’s leading organizations with the practical knowledge they need to improve their performance and better serve society. It is dedicated to equipping the world's leading corporations with the practical knowledge they need to improve their performance and better serve society. It is an objective, independent source of economic and business knowledge. Its agenda is designed to help its members understand and deal with the most critical issues of the present time.
Founded in 1916, The Conference Board is an objective, independent source of economic and business knowledge. It conducts research and convenes business leaders in forums. These insights feed into its research and meeting agendas.