Year in Review: Consumer Confidence Index
As holiday 2000 opened, the Consumer Confidence Index (CCI) fell to its lowest level in more than a year. The CCI, which is a snapshot of present-day consumer feelings, stood at 133.5 in November, down from 135.8 the previous month, and down a full 9 points in just two months, according to the Conference Board, the nonprofit research institute that compiles the Index. That drop suggests a considerable degree of consumer anxiety.
The Conference Board also compiles an Expectations Index, which quantifies consumers’ feelings about their near-term future. The Expectations Index fell from 108.4 in October to 103.4 in November this year.
The percentage of respondents expecting an improvement in general business conditions within six months fell to 15.1 percent in November, down from 16.9 percent in October, while the proportion anticipating worsening conditions rose to 7.5 percent in November, up from 7.2 percent.
The percentage of consumers expecting an improvement in employment availability fell to 15.0 percent in November, down from 18.6 percent the previous month; despite that, consumers remained optimistic about their own individual prospects, with 27.6 percent of respondents anticipating an increase in their income, up from 24.6 percent in October.
The CCI is based on a survey of 5,000 U.S. households. In 1985, the CCI equaled 100.—Louis Chunovic
