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 Basics

    5 Reasons to Expect Lower Stock Returns

    Lower stock returns are likely here to stay for some time. Here are five reasons why.
  8. Investing

    Finding Value in the Selloff Rubble

    Globally and in the United States, stocks are now in correction mode, with the recent erosion in equities in emerging markets and Europe in a bear market.
  9. Investing News

    Oil or Gold: Which Will Recover First?

    Not sure where oil and gold are headed? The answer is complex.
  10. Economics

    Signs of a Struggling Economy?

    Last week was another difficult one for stocks, marked by a bruising mid-week selloff triggered by China’s surprise devaluation of its currency. 

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!