The Conference Board Consumer Confidence Index
The Conference Board Consumer Confidence Index measures how U.S. consumers feel about current and future economic conditions. It is based on survey questions about business conditions, jobs and household income expectations.
Overview
The index is calculated from the Consumer Confidence Survey, which asks households about present business and employment conditions and their expectations for business conditions, employment and income six months ahead. The headline index averages five underlying question indexes and is benchmarked to 1985 = 100. The survey is conducted online for The Conference Board and is released monthly.
Why traders watch it
Consumer confidence can affect expectations for household spending, which is a major part of U.S. GDP. Large surprises may influence USD, equity-index sentiment and rates expectations through the growth and consumption outlook.
How to interpret the result
A stronger-than-expected reading may suggest consumers are more willing or able to spend, possibly supporting a firmer growth outlook. A weaker-than-expected reading may point to caution among households, especially if the expectations component falls sharply.