Consumer confidence index

Manufacturers, retailers, banks and the government monitor changes in the CCI in order to factor in the data in their decision-making processes.

A month-on-month decreasing trend suggests consumers have a negative outlook on their ability to secure and retain good jobs.

When faced with a down-trending index, the government has a variety of options, such as issuing a tax rebate or taking other fiscal or monetary action to stimulate the economy.

Builders can prepare for a rise in home construction, and government can anticipate improved tax revenues based on the increase in consumer spending.

A 2022 study found that the consumer confidence index always plays a positive and statistically significant function in the development of consumption.

They are also asked to assess whether now is a good or a bad time to make a major purchase, such as a house, car or other big-ticket items.

[2] The survey represents the consumer confidence about the overall economic condition, general price level, household income, and consumption plans three and six months ahead.

Since January 2007, the survey is conducted with approximately 4,600 household respondents (stratified random sampling) in 18 cities: Jakarta, Bandung, Semarang, Surabaya, Medan, Makassar, Bandar Lampung, Palembang, Banjarmasin, Padang, Pontianak, Samarinda, Manado, Denpasar, Mataram, Pangkal Pinang, Ambon, and Banten.

[4] In the United States, The Conference Board, an independent economic research organization, issues monthly measures of consumer confidence based on 5,000 households.

The index is calculated each month on the basis of a household survey of consumers' opinions on current conditions and future expectations of the economy.

In addition to the Conference Board's CCI, other survey-based indices attempt to track consumer confidence in the United States: Given the potential for sampling biases of individual survey reports, researchers and investors try sometimes to average the values of different index reports into a single aggregated measure of consumer confidence.