Economy: Consumer Confidence Index (CCI) for September 2018

The Consumer Confidence Index® (CCI) for this month (September 2018) was released by The Conference Board® this morning:

Predicted: 131.7
Actual: 138.4

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Previous Month (revised): 134.7.

Change from Previous Month: +2.747% (+3.7 points)

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The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...'After a considerable improvement in August, Consumer Confidence increased further in September and hovers at an 18-year high,' said Lynn Franco, Director of Economic Indicators at The Conference Board. 'The September reading is not far from the all-time high of 144.7 reached in 2000. Consumers’ assessment of current conditions remains extremely favorable, bolstered by a strong economy and robust job growth. The Expectations Index surged in September, suggesting solid economic growth exceeding 3.0 percent for the remainder of the year. These historically high confidence levels should continue to support healthy consumer spending, and should be welcome news for retailers as they begin gearing up for the holiday season.'

Consumers’ assessment of current conditions held steady in September. Those stating business conditions are 'good' increased from 40.5 percent to 41.4 percent, while those saying business conditions are 'bad' declined marginally from 9.3 percent to 9.1 percent. Consumers’ assessment of the labor market was somewhat more favorable. Those claiming jobs are 'plentiful' increased from 42.3 percent to 45.7 percent, but those claiming jobs are 'hard to get' increased from 12.1 percent to 13.2 percent.

Consumers’ optimism about the short-term outlook improved considerably in September. The percentage of consumers anticipating business conditions will improve over the next six months increased from 24.4 percent to 27.6 percent, while those expecting business conditions will worsen declined, from 9.9 percent to 8.0 percent. Consumers’ outlook for the labor market was also more upbeat. The proportion expecting more jobs in the months ahead increased from 21.5 percent to 22.5 percent, while those anticipating fewer jobs decreased from 13.2 percent to 11.0 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement declined from 25.4 percent to 22.6 percent, but the proportion expecting a decrease declined marginally, from 6.9 percent to 6.5 percent..."

Every month, The Conference Board sends a questionnaire to 5,000 U.S. households. Survey participants are polled about their feelings regarding the U.S. economy, current and future, and about their own fiscal circumstances. On average, 3,500 participants complete and return the 5-question survey.

The baseline "100" score for the CCI is associated with 1985 survey data.

When consumers feel good about the economy, they tend to do more spending, and vice versa.

Based in New York City, The Conference Board is a private, not-for-profit organization with a mission to, "create and disseminate knowledge about management and the marketplace to help businesses strengthen their performance and better serve society."

The CCI is usually released on the last Tuesday of the month.