A gauge on the mood of consumers or businesses. Typically based upon surveys, people are asked to rate their opinion of current and future conditions.
Consumer confidence levels are generally linked with consumer spending. For instance, when consumer confidence is on the rise consumer spending tends to increase. Low or falling consumer confidence on the other hand is typically associated with decreased spending and consumer demand.
Business confidence levels are generally liked to future corporate outlays, affecting employment, consumption and investment - and linked to broader economic growth.
Confidence indicators may vary in importance due to timeliness of the report, size of the sample, the source of the report and what the indicator specifically gauges.
Related Words
