Consumer confidence in the overall economy increased slightly in November following a record low October level, according to the Consumer Electronics Association (CEA) and CNET (www.CNET.com). The CEA-CNET Indexes also showed consumers are slightly more likely to spend on consumer electronics (CE) and technology products.
The CEA-CNET Indexes are comprised of the ICE and the ICTE, both of which are updated on a monthly basis through consumer surveys.
The CEA-CNET Index of Consumer Expectations (ICE) reached 170.0 in November, an increase of 6.3 points from last month. The ICE, which measures consumers’ confidence in the overall economy, reached the 170 mark for only the second time since February but remains below the level reached last November.
"Consumers are feeling slightly more confident that the economy will improve in the months ahead, although much uncertainty remains," said Shawn DuBravac, CEA’s economist. "The additional stimulus from gas prices moving back down nearly two dollars a gallon and a new administration set to take office has consumers more positive about the direction of the economy over the next 12 months. Holding back consumer confidence, however, is concern over the employment outlook as consumers continue to worry about jobs."
Consumer confidence in CE and technology also climbed in November. The CEA-CNET Index of Consumer Technology Expectations (ICTE), which measures consumers’ confidence in consumer electronics and technology, rose 11%, reaching 84.2, the third highest month since December 2007. Although the ICTE increased eight points in November, it is still about five points lower than this time last year.
"Our tech index has moved off its lows and shows that consumers do look ready to buy more consumer electronics in the weeks ahead, which is good news. However, consumers are tentative to spend and will purchase CE products at a much slower rate than last year’s double digit holiday growth," said DuBravac. "It remains a challenging environment for both manufacturers and retailers but significant interest in technology remains with 79% of U.S. adults wanting to receive a technology product this holiday season."
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