Monday, July 15, 2013

Midsummer's Public Mood

Near the end of every month the Conference Board reports the current status of the Consumer Confidence Index.

This index is an average of how adults in America feel about five factors: (1) current business conditions, (2) current employment conditions, (3) expectations for business conditions over the coming six months, (4) expectations for employment conditions over the coming six months, and (5) expectations for total family income for the coming six months.

It is called an index because the results for each month are reported with reference to the average results for the year 1985. Each monthly survey is based on about 3,000 completed questionnaires. The cut-off point for survey field-work is the middle of each month.  

Here are the results from January of 2007 through June of this year when the index reached 81.

The Conference Board's June, 2013, press release stated, “Consumers are considerably more positive about current business and labor market conditions than they were at the beginning of the year. Expectations have also improved considerably over the past several months, suggesting that the pace of growth is unlikely to slow in the short-term, and may even moderately pick up.”

Since February of 2009 the underlying public mood appears to be moving in a positive direction. The next report will be on July 30th.

    Copyright © 2013 by John Eighmey. All Rights Reserved.

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