Consumer confidence
The consumer confidence index is a monthly survey of public attitudes towards the economy. It is compared to the optimism of the nation in 1985, which was arbitrarily given a score of 100.[1] Hence a score below 100 means the public is less confident about the economy, while a score above 100 means the public is more confident. The highest ever recorded response to the consumer confidence index was a 144.7 in January, 2000 during the presidency of Bill Clinton,[2] with 54% of the households surveyed describing employment opportunities as "plentiful".[3] By contrast, the lowest ever recorded on the consumer confidence index was a 25.3 in February, 2003 during the George W. Bush administration.[2] This monthly report is watched closely by stock market traders and politicians.
Consumer spending accounts for 70% of the overall economy activity, and thus a decrease in consumer confidence is detrimental to the economy.
On August 25, 2020, the Conference Board, which is a New York research organization, announced that its Consumer Confidence Index had declined to 84.8, which is its lowest level since May 2014. This follows a drop to 91.7 in July.
