Consumer Confidence Index (CCI)
Quick Definition
A survey-based economic indicator measuring consumers' optimism about the economy, personal finances, and spending intentions.
Key Takeaways
- Published monthly by The Conference Board based on 5,000 household surveys
- A reading above 100 indicates above-average confidence levels
- Consumer spending drives approximately 70% of U.S. GDP
- Acts as a leading indicator for economic growth and potential recessions
- The University of Michigan publishes a similar Consumer Sentiment Index
What Is Consumer Confidence Index (CCI)?
The Consumer Confidence Index (CCI), published monthly by The Conference Board, measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. The index is based on a survey of 5,000 U.S. households assessing current business conditions, expected business conditions in six months, current employment, expected employment, and expected family income. A reading above 100 indicates above-average confidence. The University of Michigan also publishes a similar Consumer Sentiment Index. Consumer confidence is a leading indicator because consumer spending accounts for approximately 70% of U.S. GDP. When confidence rises, consumers tend to spend more, driving economic growth; declining confidence often foreshadows reduced spending and potential recession.
Consumer Confidence Index (CCI) Example
- 1Consumer confidence dropped to 85.7 in early 2022 as rising inflation eroded purchasing power and dampened household optimism.
- 2Retail stocks rallied after the Consumer Confidence Index unexpectedly jumped to 115, signaling robust consumer spending ahead.
- 3The divergence between the Conference Board's CCI and the University of Michigan's Sentiment Index provided conflicting signals about the consumer outlook.
Related Terms
GDP (Gross Domestic Product)
The total monetary value of all finished goods and services produced within a country's borders in a specific time period.
Leading Economic Indicators
Statistical measures that tend to change before the overall economy shifts, used to predict future economic activity.
Business Cycle
The recurring pattern of expansion and contraction in economic activity, typically measured by changes in real GDP and employment.
Unemployment Rate
The percentage of the labor force that is jobless and actively seeking employment, a key indicator of economic health.
Recession
A significant, widespread, and prolonged decline in economic activity, commonly defined as two consecutive quarters of negative GDP growth.
Federal Reserve (The Fed)
The central banking system of the United States, responsible for monetary policy, bank regulation, and financial stability.
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