Understanding the Consumer Confidence Index

When producers of television and radio programs want to assess audience opinions, they typically consult with ratings agencies. These agencies survey a sample group of viewers or listeners in an attempt to measure how larger audiences rate a particular show.

When economists and other interested parties want to know how U.S. consumers feel about the economy, they often turn to the consumer confidence index (CCI).



The Conference Board’s monthly survey attempts to measure how consumers “rate” economic conditions by polling a representative sample of 5,000 households (about 3,500 surveys are returned). Answers are used to calculate an index value, which is compared to a benchmark set in 1985.

Consumers are asked to:

Investors can benefit from watching the CCI for clues about the direction of the economy. But be advised that this index doesn’t predict events; it only observes consumer attitudes.

1) Consumer Research Center, 2002

© 2002 Emerald Publications

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