Consumer Confidence Indexmacro

CCI (Consumer Confidence Index) is a monthly macroeconomic indicator published by The Conference Board that measures consumer sentiment by surveying households about current conditions and expectations for the economy.

Overview

CCI (Consumer Confidence Index) is a monthly macroeconomic indicator published by The Conference Board. It measures consumer sentiment by surveying households about current conditions and expectations for the economy. The index uses a base period (1985=100) and reports a headline reading plus two subindexes: Present Conditions and Expectations.

What it measures

The survey asks respondents to rate current business conditions, employment conditions, and their expectations for business and labor market conditions over the next six months. The Present Conditions index captures views on current conditions, while the Expectations index reflects anticipated changes in income, business activity, and the job market.

How it is used

Economists and market participants monitor the headline CCI and its subindexes to gauge consumer mood and potential shifts in spending. A rising headline often suggests stronger consumer spending and higher near-term GDP growth, while a declining reading can indicate softer demand. The data are used in macroeconomic analysis, forecasting models, and to inform expectations about policy discussions or market sentiment.

Limitations and context

CCI is a sentiment indicator and may not perfectly predict actual spending. It can be volatile month to month and is subject to sampling error and revisions. It should be considered alongside other indicators, such as retail sales, personal consumption expenditures, and inflation data, when assessing the consumer side of the economy.

Example Usage

In the January release, the CCI rose to 110 from 108, signaling improved consumer sentiment about current conditions and the economy’s outlook.

Related Terms

University of Michigan Consumer Sentiment Index · Leading Economic Indicators · Personal Consumption Expenditures (PCE) · Gross Domestic Product (GDP) · Retail Sales