The degree of optimism of consumers on the current and expected state of the economy. The level of confidence determines their spending and saving decisions. Consumer confidence can be measured through surveys. In the US the Consumer Confidence Index, based on a survey of 5000 households, is published by the Conference Board, an independent research organization. In the UK, the Consumer Confidence report, based on the survey of 1000 households, is published monthly by the Nationwide Building Society. Survey questions involve appraisal of current and expected (say, six months ahead) economic and employment conditions and family income.
|Reference: Oxford Press Dictonary of Economics, 5th edt.|