Definition |
Measures the degree of optimism consumers feel about the overall economy and their personal financial situation. |
Measures the sentiment of businesses or producers regarding future production, orders, and economic conditions. |
Focus Group |
Households and individuals. |
Manufacturers, service providers, and business owners. |
Purpose |
To gauge consumer spending potential and demand outlook. |
To assess business sentiment regarding production and investment. |
Indicators Measured |
Job prospects, income expectations, willingness to spend. |
Order books, production expectations, inventory levels. |
Effect on Economy |
High CCI typically boosts consumer spending and demand. |
High PCI may lead to increased investment and hiring. |
Leading/Lagging |
Leading indicator of consumer behavior and economic direction. |
Leading indicator of business activity and economic cycles. |
Released By |
Organizations like the Conference Board or government statistical agencies. |
Often released by central banks, government bodies, or business associations. |
Impact on Markets |
Can influence stock markets, especially in retail and service sectors. |
Impacts investment decisions, industrial production, and B2B sectors. |
Example Scenario |
Consumers confident about jobs → more spending on goods and services. |
Producers confident about demand → increase in production and hiring. |
Frequency |
Usually published monthly or quarterly. |
Also released monthly or quarterly depending on the country. |
consumer confidence index vs producer confidence index