Previous : 75.0
Forecast : 73.5
A measure of consumer attitudes, preferences, and expectations concerning the state of the economy and business cycle conditions that is compiled each month by The Conference Board. The Conference Board is also responsible for compiling the leading, coincident, and lagging economic indicators. The Consumer Confidence Index is one of two primary measures of consumer attitudes. The other is the Index of Consumer Sentiment developed by the University of Michigan.
Why is it useful?
The importance of consumer confidence index at currency market is considered moderate, because it influences consumers consumption level, so if the expected percentage inclines, it means that the consumer confidence in the local economic will likely to improved and it effects consumers' willingness to spend money that allows them to obtain available utilities granted by the economy; as a result the aggregate demand on goods and services will increase which cause rising production quantities produced by different factories. Accordingly the local currency supply quantity becomes more available in the market, and certainly this will strengthen the currency.
At the same time this indicator has a similar effect on the stock market, because if it shows positive figures that means it will leave a significant improvement on several companies stocks in different sectors, as an outcome to increasing consumers' willingness to spend more money to satisfy their needs from diverse goods and services, which pushes up stock indices.
Some studies proved that this effect might be theatricality true, that in fact it might not leave any considerable effect on the local currency; that's why the effect is not necessarily valid every time and is moderate.
Previous : 75.0