What is Consumer Confidence·

Posted By: Dr. Frugal in Economics on 10/31/2007 at 05:26:14

Sometimes terms are a little misleading so I thought I would explain what consumer confidence is today. As a preface, I read this regarding the US having the lowest consumer confidence in 2 years.

Consumer confidence is defined as the degree of optimism on the state of the economy that consumers are expressing through their activities of savings and spending. There is a more in-depth article at Wikipedia.

Personally, I always thought rating consumer confidence was stupid. I can tell you that my spending and saving habits are determined by one thing--what I need.


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