Consumer Confidence Index (CCI)

In Depth

The Consumer Confidence Index, published monthly by The Conference Board, gauges the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. The survey asks 5,000 households about current business conditions, the job market, and their expectations for income, business, and employment six months ahead. The index is benchmarked to 1985 (a value of 100). A reading above 100 indicates higher confidence than in the base year. Because consumer spending drives roughly 70% of U.S. GDP, shifts in confidence often foreshadow changes in spending patterns, retail sales, and housing activity. When confidence falls sharply, consumers pull back on discretionary purchases, delaying big-ticket items like cars, appliances, and vacations. The University of Michigan publishes a similar but separate Consumer Sentiment Index. Together, these surveys help business leaders anticipate demand shifts, plan inventory levels, and time marketing campaigns. Sustained declines in consumer confidence can be an early warning of recession.