Market news | 12 May, 2020

Consumer confidence index shows the US consumer sentiment of the general economic situation

Communications

Consumer confidence, measured in the Conference Board Consumer Confidence (CCI), is defined as the degree of optimism about the state of the economy in general.

This index shows the results of a survey of 5,000 households. It is an important leading indicator for investors given its ability to predict consumer-spending patterns in the retail and luxury goods industries.

The confidence index bottomed out at 25.3 in early 2009-a historic low. The actual sentiment of American consumers is driven to save more and consume less.

The uncertainty of the economic effects of COVID-19 will likely cause the index to fluctuate in the months ahead until the reopening of the US economy.