Consumer Confidence Index - CCI

Loading the player...

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.

RELATED TERMS
  1. Present Situation Index

    A subindex that measures overall consumer sentiments toward the ...
  2. Expectations Index

    A sub-index that measures overall consumer sentiments toward ...
  3. The Conference Board

    A not-for-profit research organization for businesses that distributes ...
  4. CEO Confidence Survey

    A monthly survey of 100 CEOs from a variety of industries in ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy ...
  6. Westpac Consumer Confidence Index

    An index measuring the level of consumer confidence in Australia. ...
Related Articles
  1. Investing

    Consumer Confidence Index

    The Consumer Confidence Index is the result of a monthly survey of 5,000 U.S. households by the Conference Board that measures how optimistic or pessimistic consumers are about the economy's ...
  2. Markets

    Understanding The Consumer Confidence Index

    We look at this closely watched economic indicator to see what it means and how it's calculated.
  3. Trading

    How To Read The Michigan Consumer Sentiment Index

    The Michigan Consumer Sentiment Index has provided a key leading indicator for investors and economists for decades. This respected index is published monthly from the results of random telephone ...
  4. Markets

    Consumer Confidence Down From Last Year

    Economic readings point to good times ahead. Consumer sentiment says something else. What is correct?
  5. Markets

    4 Key Indicators That Move The Markets

    Find out what reports to watch in order to anticipate and react to market movements.
  6. Trading

    Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  7. Retirement

    Consumer Confidence: A Killer Statistic

    The consumer confidence is key to any market economy, so investors need to learn the measures and how to analyze them.
  8. Entrepreneurship & Small Business

    JPMorgan Survey: Small Businesses Optimistic

    According to a recent survey, small business owners are feeling good about the foreseeable future.
  9. ETFs & Mutual Funds

    Market Bottom: Are We There Yet?

    No one rings a bell when the bear market's over, but that doesn't mean there's no way to predict a bottom.
  10. Markets

    4 Key Indicators That Move The Markets

    Educated investors need to keep their finger on the pulse of the economy, and watching certain indicators is a good way to do that.
RELATED FAQS
  1. What's the difference between consumer confidence and consumer sentiment?

    There isn't a difference between consumer confidence and consumer sentiment. Both terms are used to refer to the degree of ... Read Answer >>
  2. Why should an investor in the retail sector consider the Consumer Confidence Index?

    Learn how the Consumer Confidence Index works and why it is such a valuable tool for retail investors to predict future consumer ... Read Answer >>
  3. How should an investor interpret the consumer and business confidence index when ...

    Learn how investors benefit from watching the consumer and business confidence indexes, along with other key metrics, when ... Read Answer >>
  4. What economic indicators are important to consider when investing in the retail sector?

    Learn why the unemployment rate and Consumer Confidence Index are two of the best economic indicators when investing in the ... Read Answer >>
  5. Which economic factors most affect the demand for consumer goods?

    Understand how key economic factors such as inflation, unemployment, interest rates and consumer confidence affect the level ... Read Answer >>
  6. How can consumer durables act as economic indicators?

    Learn how consumer durables act as economic indicators. Consumer durables are products with life spans of at least three ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center