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Previous: 108.0 Expected: 114.2 Actual: 114.8
CB US Consumer Confidence Index
The US Consumer Confidence Index published by the Economic Research Council-Conference Board (CB) is an important measure of the strength of the US economy.
The index is calculated through a survey of a sample of US households that measures their optimism or pessimism about economic conditions.
Each month, respondents ask families a series of questions to measure three key elements:
Current Conditions: How satisfied the household is with the current economic conditions
Forecasts: The household’s expectations regarding economic conditions over the next 12 months
. Purchasing Aspects: The household’s desire to purchase major goods and services in the near future
If the US Consumer Confidence released by the Conference Board (CB) comes out higher than expected, this will have the following effects on the US economy:
• Consumer spending and spending on capital goods will increase, as consumers are more optimistic about their current and future financial conditions.
• The savings rate will decrease, as more income will be directed towards spending.
• Activity may increase in sectors such as retail, tourism and entertainment, to meet the high demand.
• Corporate sales may increase, which may prompt them to increase employment or raise wages.
• Real estate prices may rise due to the increase in economic confidence among investors.
How does the CB Consumer Confidence Index affect the trading of the US dollar in the forex market?
US Consumer Confidence data released by CB provides several benefits to forex traders, including:
• Provides insight into the thoughts and expectations of American consumers, which directly affect the performance of the US economy.
• The release of the indicator can be used as a potential entry or exit point for positions. When the index drops suddenly, the dollar can be sold due to fears.
• The long-term trend indicator can be used to determine the direction of the dollar. When the indicator is strong, the dollar tends to rise.
• You can take advantage of the short-term volatility of the index to find trading opportunities for the dollar.
In short, the higher the index, the greater the chances of a stronger dollar and vice versa. Therefore, the index is a useful tool for tracking the performance of the US dollar.
The agency responsible for issuing the US Consumer Confidence Index (CB)
The CB Consumer Confidence Index is released by the Economic Research Council – The Conference Board.
The Conference Board is a non-profit organization that conducts economic research and publishes relevant data. It has a prominent position as a reliable source of economic information for decision makers and investors.
The Council collects consumer confidence index data through a monthly survey of a sample of American households about their confidence in the economy and their ability to spend.
The index is then calculated and monthly results are published, which provide the market with a useful gauge of consumer confidence and economic expectations among Americans.
The release date of the US CB Consumer Confidence Index
It is released monthly on the last Tuesday of the current month
Feb 27, 2024