US Consumer Confidence is an economic indicator that measures the level of optimism or pessimism among American consumers regarding the state of the economy. It is a key indicator that affects financial markets, as high levels of consumer confidence indicate economic growth, while low levels indicate economic slowdown.
Key aspects:
1. Measuring tool:
Conference Board Consumer Confidence Index (CCI): The most widely used index, published by the Conference Board based on a monthly survey of about 3,000 households.
Main components of the index:
Current economic situation.
Expectations for the future (6-month forecasts).
2. Scale and dynamics:
The index is based on a value of 100 (1985 level). A value above 100 indicates optimism, and below - pessimism.
3. Impact on the economy:
Positive impact: High levels of consumer confidence stimulate spending, which contributes to economic growth.
Negative impact: Low confidence can lead to lower consumer spending and a slowdown in the economy.
4.Factors affecting the indicator:
Employment level. Inflation and interest rates. State of stock markets. Political and economic stability.
