Happy Friday everybody and welcome to another episode of The Reside Daily Bite; I’m your host, David Doucette. Today, I want to talk to you about the Consumer Confidence Index. It’s still going to be a happy Friday after we’re done talking about it.
The Consumer Confidence Index is a number that is used to measure the confidence of how consumers feel about the economy based on their spending and saving habits. It’s a very important number because the Federal Reserve will look at that number when they’re deciding whether to make changes in the interest rate. The stock market pays attention to that number, as well. So, it’s a very important number.
How do we come up with it? Who does it? Well, the Conference Board, which is an independent economic research group, is the ones responsible for coming up with a Consumer Confidence Index and they do that based on 5,000 households; they do it monthly. And the reason I’m talking about this today, is they just released September’s number. It’s down from August by about 5 points. So, where we are right now (September); it is at 48.5. Our Consumer Confidence Number right now, in the United States, is 48.5. In August, it was 53.2. We’ve come down about 5 points.
Now, what does that mean? Well, we have to put it in historical perspective to really understand them. In September of 2000, the Consumer Confidence Index was up around 142. In September of 2007, it was down to about 112. That’s when it really started to quickly go down for about the next year and a half to about 50 or so. The lowest of the Consumer Confidence Index was March of 2009. It was 26.9. We’ve been making our way up and in May of 2010 (so, May of this year); we were actually at 62.7. We’ve been kind of coming down a little bit since May and hopefully we’re going to see that numbers start to come up. It comes out monthly. It’s very important number to follow and you’ll probably hear it on the news. And, that is the Consumer Confidence Index number.
It’s still happy Friday here. I want to thank you so much for checking out The Reside Daily Bite.