Consumer Confidence

Updated 8 months ago

The consumer confidence index ‘fell’ in August to the lowest point since October of 2011. Why should I care? What does it mean?What is the Consumer Confidence Index? – This is an economic measure of consumer optimism. It is a unique survey compared to several others(such as the University of Michigan consumer sentiment survey). Two parts of the survey: 40% of the measure is the present concerns of consumers. How do you feel about costs (inflation), about your job and the stability of your income. The other 60% is a measure of your expectations. Why is the Consumer Confidence Index measured monthly?- Your vision of the future and if you plan on buying a car or other higher ticket items matters. If you are worried about your job, you see others losing their jobs, you won’t spend money. Then people who make the doo-dads you didn’t buy will be laid off, then you will feel more nervous.When consumers are confident about work and the future they shop, they buy things. The doo-dad makers needs more workers and adds a third shift. Those new hires buy things and the ebullience creates more confidence. Consumer spending is about 70% of all ‘economic activity’. Our buying bread, cars, pens and computers keeps money moving and the economy strong. If consumer confidence drops, or rises, the consequence matters a great deal to you personally and to manufacturers, and other businesses.August’s number – was down to 60.6 It is the lowest number in nine-months. September’s index will be released today (september 25th )Citation:Index:As a percentage of GDP -The University of MI sentimnent survey: Nine-month low:Marion Syversen, MBANorumbegaFinancial207.862.2952Marion@NorumbegaFinancial.com Check out our website that includes weekly streaming videosWWW.NorumbegaFinancial.com The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. Email management, archiving & monitoring technology powered by Smarsh, Inc. Disclosure:Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc. and Norumbega Financial are separate entities, independently owned and operated. CR8493


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