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ARCHIVES
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Special Edition 10
December 10, 2002
Vol. 1
Issue 10
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Issue 9
November 26, 2002
Vol. 1
Issue 9
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Issue 8
October 29, 2002
Vol. 1
Issue 8
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Issue 7
October 2, 2002
Vol. 1
Issue 7
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Issue 6
September 5, 2002
Vol. 1
Issue 6
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Special Edition 5
August 16, 2002
Vol. 1
Issue 5
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Issue 4
July 29, 2002
Vol. 1
Issue 4
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Issue 3
June 28, 2002
Vol. 1
Issue 3
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Issue 2
May 23, 2002
Vol. 1
Issue 2
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Introductory Issue
April 17, 2002
Vol. 1
Issue 1
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12-20-02 – The Consumer Confidence Index, which has declined for five straight months, rebounded in November 2002. The index now stands at 84.1, up from 79.6 in October. The rebound in expectations suggests consumers do not expect economic conditions to become worse,” says Lynn Franco, Director of The Conference Board’s Consumer Research Center. “This comeback, combined with yesterday’s upbeat forecasts for Christmas spending, signals a brighter holiday spending season than was anticipated only a month ago.”
11-26-02 – In October 2002, the Consumer Confidence Index nosedived to its lowest level, 79.4, since November 1993, when it stood at 71.9. "A weak labor market, the threat of military action in Iraq, and a prolonged decline in the financial markets have clearly dampened both consumers' confidence and their expectations for the near future," says Lynn Franco. "The outlook for the holiday retail season is now fairly bleak. Without the likelihood of a pickup in consumer spending, an already weak economic recovery could weaken further."
10-26-02 – The Conference Board's Consumer Confidence Index, which had fallen in the last three months, declined again in September. The Index now stands at 93.3 (1985=100), down from 94.5 in August. "Weak labor market conditions continue to erode confidence," says Lynn Franco, Director of The Conference Board's Consumer Research Center. "But while consumers are not as positive about current business conditions, they are more optimistic about the outlook than last month. Historically, this trend is prevalent during a recovery."
NOTE: The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by NFO WorldGroup, a member of The Interpublic Group of Companies (NYSE: IPG).
09/27/02 – Nothing new to report.
09/05/02 – CCI dropped dramatically in July 2002, to 97.4, followed by another drop in August 2002 to 93.5, possibly due to large declines in the value of the U.S. stock market. According to Franco, "the Consumer Confidence Index is now at its lowest level since November 2001." Most economists seem to be uncertain about where the nation's economy is headed; many seem to be taking a wait-and-see stance.
07/29/02 – CCI was relatively flat during the months of March, April and May of 2002. However, in June 2002, the index dropped four points to 106.4. "Weak labor market conditions, generally soft business conditions and waning public confidence in questionable business practices (i.e., WorldCom, Tyco, etc.) have helped erode consumer confidence," noted Lynn Franco, Director of The Conference Board's Consumer Research Center. "Still, the latest readings point to continued consumer spending and moderate economic growth."
06/28/02 – Although overall consumer confidence dropped a bit in April 2002, it's reassuring to note that one of the components comprising CCI, the Expectations Index, has risen dramatically over the early months of 2002. This means that consumers are anticipating an improvement in the U.S. economy. Many economists concur. On the other hand, the other component of CCI, the Present Situation Index, is substantially lower so far this year than it was last year. This just means that consumers are not really confident about the current circumstances of the nation's economy at this point in time. This could have implications for the upcoming summer travel season, suggesting that it may experience a slow start but a strong finish.
05/23/02 – Nothing new to report.
04/17/02 – According to many economists, the nation has been in a recession that in retrospect began in March 2001. Consumer confidence has been on a downward spiral for quite some time; however, it began to recover from its lowest levels in December 2001. It is likely that the Enron scandal contributed to the slight downward blip in February, but some strong signs of recovery finally began to appear in March 2002. This is a good sign for the Michigan tourism industry since consumers tend to spend more money on travel when they express higher levels of confidence in the economy.
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