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. Insights

    Understanding the Consumer Confidence Index

    Consumer confidence index is an important economic indicator for investors. Find out what it means and how it's calculated.
  2. Insights

    Why Consumer Confidence Matters

    As consumer spending is a dominant component of the U.S. economy, how consumers feel about the economy can become self-fulfilling.
  3. Investing

    Does the S&P Follow the Consumer Confidence Index?

    Are the ups and downs of the Consumer Confidence Index similar to those of the S&P 500?
  4. Trading

    "Do The Right Thing" For Trade Breakouts

    Often in life, the right action is the hardest to take. Discover how to get on the right side of a trend.
  5. Trading

    Using index futures to predict the future

    Want to know whether the stock market will open up or down? Learn about index futures and how they can help predict how the market will trade.
  6. Insights

    Comparing Market Returns to Consumer Expectations

    A lot of pundits will tell you there are certain indicators of future market performance. But do those claims hold up?
  7. Investing

    The Hidden Flaws of Index Investing

    Index investing isn't always better than active investing. Here's why.
  8. Personal Finance

    What Consumer Spending Reveals About The Economy

    We compare U.S. consumer spending patterns, especially in housing, food, and healthcare, against consumer spending in other countries.
  9. Investing

    Consumer Reports to Create IoT Devices Standards

    CR will create a rating system to help protect consumers' personal data and security.
Trading Center