Consumer Confidence Index



Next video:
Loading the player...

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 current and future performance. When the index is high, consumers are expected to increase their spending on goods and services. When it is low, a decrease in spending is expected. Since consumer spending accounts for about two-thirds of gross domestic product, consumer confidence is an important indicator of where the economy might be headed.

The Consumer Confidence Index, or CCI, has a benchmark value of 100. Analysts can view CCI data by consumer age, income and census region.

Opinions on current conditions make up 40% of the index, with expectations of future conditions comprising the remaining 60%. The board calculates a relative value for each question by dividing the total positive responses by the total positive and negative responses. These values are averaged and then compared against the benchmark value of 100 to create the current index value.

Related Articles
  1. Markets

    Standard And Poor's 500 Index

    Learn about this index of index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors.
  2. Investing

    What Moves Stock Prices?

    Even if you don't invest a cent in stocks, you should still understand how the stock market works. Find out why.
  3. Forex

    What Is GDP?

    GDP is like a price tag on a country's output, and it measures the size of the economy. Find out what it means.
  4. Investing

    The Dow Jones Industrial Average

    Learn how this price-weighted index performs and the ways to interpret its movements.
  5. Markets

    Market Mentalities: Bulls Vs. Bears

    Learn the importance of these opposing views on investing in the markets.
  6. Economics

    Monetary Inflation

    Ever wondered why a candy bar no longer costs 50 cents? The answer is monetary inflation. Find out what this means and how it affects your purchasing power.
  7. Investing News

    Market Outlook: No Bottom Until 2017?

    These investing pros are bearish on the market in 2016. Will there be a bottom in early 2017?
  8. Economics

    Negative Interest Rate Policy (NIRP)

    A negative interest rate policy is an unconventional monetary policy tool in which nominal target interest rates are set below zero.
  9. Investing News

    How China's Economy is Now Like America's

    China's economy could take the global economy down with it; why that might be good news in the grand scheme.
  10. Investing News

    A 2016 Outlook: What January 2009 Can Teach Us

    January 2009 and January 2016 were similar from an investment standpoint, but from a forward-looking perspective, they were very different.
Hot Definitions
  1. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  2. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  3. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  4. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center