Consumer Confidence

The third data fact worth watching is the Consumer Confidence Index reported monthly.

The Consumer Confidence Index, or CCI, is a monthly release from the Conference Board. It dates back to 1967. The CCI is designed to assess the overall confidence, relative financial health and spending power of the US average consumer.

- Lowest level was in Sept ’08 at 25 when Lehman and Bear Stearns went out

- Looking for a Consumer Confidence index between 90-100

 

It is widely known that the US economy is driven by the consumer (70%) rather than anything we manufacture! The following chart shows the CCI for the previous recessions. It would seem that consumers continue to view this economic climate similar to a recession.

I will confess that the 1980 - 1982 recession was extremely difficult for the housing industry and the worst economic period I personally faced until NOW. Pray for the best and plan for the worst.