|
Consumer
Confidence
|
1ST
Release |
|
|
 |
| MOST
RECENT STATISTIC: |
53.5 |
|
|
| PERIOD
COVERED: |
August 2010 |
|
|
| Date
Released: |
08/31/10 |
|
|
| Next
Release: |
09/28/10 |
|
|
| Grade: |
F |
|
|
| Index: |
53.5 |
|
|
| Present
Situation: |
24.9 |
|
|
| Expectations: |
72.5 |
|
|
|
Analysis for the Housing Market
By:Ken Lee
After declining for two consecutive months, the consumer confidence index rebounded in August. The consumer confidence index increased to a reading of 53.5 in August from a revised July figure of 51.0. However, the consumer confidence index is lower compared to the same year-ago period when the index stood at 54.5.
The present situation index declined from the previous month to a reading of 24.9 from 26.4 last month. This is the third straight month that the present situation index has declined. The expectations index increased to a reading of 72.5 from 67.5 in the previous month. Five out of the nine regions across the country posted a monthly increase in consumer confidence. The five regions to post a monthly increase in consumer confidence in August were the South Atlantic (+11.02%), East South Central (+22.22%), West South Central (+0.91%), Mountain (+17.99%), and Pacific (+28.27%) regions. The Middle Atlantic region posted the largest monthly drop, falling 14.99% from July levels.
Sentiment regarding the present business situation was slightly more negative while sentiment regarding the present employment situation was more pessimistic than last month. Consumers' expectations of business conditions, employment, and income for the next six months were all more positive in August.
The number of people surveyed that plan to buy a home within the next 6 months increased to 2.0% from 1.9% while the portion that plans to buy a new home increased to 0.4% from 0.3% in the previous month.
Definitions and Importance for the Housing Market By:
By:Ken Lee
The Consumer Confidence Survey is a monthly measure of the public's confidence in the health of the U.S. economy, and is an important measure for the health of the housing markets. Because the index measures consumers' willingness to spend money (including buying a home), as well as their confidence in their future employment and income levels, it can be used to determine households' willingness to make a large investment in a home (down payment) and to assume the monthly payments of a mortgage.
The Consumer Confidence Index is based on a mail survey of 5,000 U.S. households, with a typical 70% response rate. The survey is taken during the first few weeks of every month, and different households are surveyed each month. There is an index for the United States overall, as well as an index for each of the nine major regions defined by the Census Bureau. There are also two subindices: Present Situation and Expectations. The Consumer Confidence Index is bench marked to 1985=100, and we consider an index above 100 to be a positive outlook for housing market conditions. Survey results are published monthly and are revised the following month once the surveys are analyzed more thoroughly. The survey is conducted for The Conference Board by NFO Research Inc., an NFO Worldwide Company (NYSE:NFO), based in Greenwich, Connecticut.
For more information on the Consumer Confidence Index, go to:
http://www.crc-conquest.org/
|
