Consumer Confidence is a sentiment that impacts economies and markets and is an extensively researched by economists.
It is an economic indicator which measures how confident consumers are about the overall state of the economy. It also measures how confident people feel about the their income's stability. Their confidence impact their economic decisions - like their spending activity. As a result, consumer confidence is a key indicator for the shape of the economy.
A weak consumer confidence indicates decline in consumer spending. On the other hand if consumer confidence is improving manufacturers can begin to boost production and inventories.
In the US consumer spending represents about 70% of the GDP.
While measuring spending is rather straightforward predicting future trends can be very difficult given the fickle and scattered nature of consumers on an aggregate basis.
Economists have solved this problem by developing what is known as Consumer Confidence Index (CCI)
These surveys aims to measure the degree of optimism that consumers feel about the overall state of the country's economic might as well as their own personal financial situation.
Consumer confidence in India in India has go impacted by demonetisation and GST ( see 2017) as well as with the NBFC crisis and sudden spurt in the crude oil prices.
With all of this behind us the General Elections will weigh on consumer's minds in 2019 in India. However after the elections there is likely to be an improvement in the Consumer Confidence.
( Disclaimer : For general information only and not to solicit any business)
It is an economic indicator which measures how confident consumers are about the overall state of the economy. It also measures how confident people feel about the their income's stability. Their confidence impact their economic decisions - like their spending activity. As a result, consumer confidence is a key indicator for the shape of the economy.
A weak consumer confidence indicates decline in consumer spending. On the other hand if consumer confidence is improving manufacturers can begin to boost production and inventories.
In the US consumer spending represents about 70% of the GDP.
While measuring spending is rather straightforward predicting future trends can be very difficult given the fickle and scattered nature of consumers on an aggregate basis.
Economists have solved this problem by developing what is known as Consumer Confidence Index (CCI)
These surveys aims to measure the degree of optimism that consumers feel about the overall state of the country's economic might as well as their own personal financial situation.
CONSUMER CONFIDENCE INDEX INDIA
(SOURCE : Reserve Bank of India report on December 05, 2018)
(https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/CCS051220186D6565D5BFD0444CA07E6F5118102FA5.PDF)
Consumer confidence in India in India has go impacted by demonetisation and GST ( see 2017) as well as with the NBFC crisis and sudden spurt in the crude oil prices.
With all of this behind us the General Elections will weigh on consumer's minds in 2019 in India. However after the elections there is likely to be an improvement in the Consumer Confidence.
( Disclaimer : For general information only and not to solicit any business)
