Monday, March 29, 2010 Categorized under Stock Market

Consumer Confidence Index (CCI) : Economic Indicator

It is an indicator which is used to measure the confidence of consumers.The degree of optimism which the consumers have on state of economy, these are expressed through their actions as how they spend and save money.

Get the latest report here

http://www.conference-board.org/economics/consumerConfidence.cfm

In U.S this indicator is issued on a monthly basis by THE CONFERENCE BOARD, which is a independent economic research organisation.They take a sample of 5000 households.

Questions asked in survey :

  1. Current business conditions
  2. Business conditions for the next six months
  3. Current employment conditions
  4. Employment conditions for the next six months
  5. Total family income for the next six months

For Investors :

Well if the CCI proves to be positive then markets will be gaining upward momentum.While index changes of less than 5% are often dismissed as inconsequential, moves of 5% or more often indicate a change in the direction of the economy.Well many banks and manufacturers use CCI for future planning if CCI is negative they have to cut off overheads,delay new projects etc.And if it is positive then they can increase production and hiring

Points:

It doesn’t provide physical data set
Sample size is small

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