Consumer Confidence

Consumer confidence is an important economic indicator that measures how consumers are feeling at the present moment. Consumer confidence is important because most industrialized economies are reliant on the consumer to drive the economy. If consumer confidence is rising, that means people feel the future is most likely prosperous; if consumer confidence is falling, that means people are worried abut the future. However, like many economic indicators, consumer confidence can be a contrarian tool. This means that when consumer confidence is at its weakest, the economy might be at a turning point.


I have written over and over again on how distorted the U.S. business sales and inventory figures are. Manufacturers are stockpiling products. Retailers are experiencing a decline in sales. Consumer spending is getting softer. But it’s more than just retail…

U.S. consumer confidence jumped up to a five-month high in June, signaling the U.S. economy is picking up momentum. The University of Michigan released its final results on consumer confidence for June 2015. The Consumer Sentiment Index rose to 96.1…

Consumer confidence in the U.S. fell to a six-month low in May as Americans became less sanguine about the prospects for the economy. The University of Michigan reported on Friday May 29, 2015 that its final index of sentiment for…

I am not surprised that the retail sales remained unchanged in April. Although warmer weather is upon us, the April retail sales data did not warm up the way the industry would have liked. Retail Sales and Consumer Confidence Fading…

It’s widely expected that at the end of this month, the Federal Reserve will end its third round of quantitative easing (that began in September of 2012). This is QE3, where the Federal Reserve was printing $85.0 billion of new…

In the first quarter of 2014, Retail Metrics, a retail industry research firm, found U.S. retailers missed their corporate earnings estimates by the most since the year 2000! As I have been writing, consumer spending only increases when consumer confidence…

All of a sudden, auto sales are declining… Auto sales in the U.S. economy declined to an annual rate of 15.4 million units in December. In November, this number stood at 16.41 million units—a decline of more than six percent.…

While 2013 will go down as the banner year for the S&P 500 and other key stock indices no one expected, the number of warning signs about this overpriced and overbought stock market has only increased. And my readers need to…

Something very interesting happened yesterday. The Federal Reserve said it would start “tapering” its quantitative easing program by $10.0 billion a month. In other words, the Fed will now print $75.0 trillion a month in new money instead of $85.0…

What the Federal Reserve is doing in the U.S.—its effort to get the economy going via its money printing program—has already been tried by the second-largest economy in the world: Japan. Unfortunately, the easy monetary policy implemented by the Bank…

This morning we learned sales for this year’s Black Friday weekend declined for the first time since 2009. I have been warning my readers for months that falling consumer confidence would result in a pullback in consumer spending—and that’s exactly…

Can it be true? The U.S. Department of the Treasury has reported that for the federal government’s fiscal 2013 year, which ended on September 30, 2013, the U.S. government budget deficit was $680 billion—the smallest budget deficit in five years.…

The Federal Open Market Committee (FOMC) decided this week to keep quantitative easing and easy monetary policy going. The statement by the Federal Reserve said, “To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its…

More evidence consumer confidence in the U.S. economy is plunging… The monthly Bloomberg Consumer Comfort Index, a consumer confidence indicator that shows the expectations of Americans about the U.S. economy, plunged to its lowest level in October since November of…