Consumer Confidence Finally Recovers

7 12 2007

The Consumer Confidence Index (CCI), which had been in a downtrend since July 07, perked up in November to stand at a level of 86.5, up 5.2% over the previous month. Propelling the increase in the CCI was the 9.2% jump in the level of the Present Situations Index (PSI) to 68.3 after it had slumped to a four-month low of 62.5 in October. At the same time, the Expectations Index (EI) rose 3.3% to 100.2 from 97.0 in October, giving rise to hopes of a pick-up in consumer spending.

Declines in basic foodstuff prices and upbeat assessments on the overall state of the economy have helped to quell consumer concerns over the prospects for the economy in the months ahead. At the same time, consumers should spend more – especially on traveling – during the holidays at the end of the year. This should give a timely boost to the economy. Read the rest of this entry »