CEA: Consumer Confidence in Economy Highest in Nearly 5 Years
Oct 26, 2012
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Consumer confidence in the overall economy increased in October to the highest level since 2008, according to the October Index from the Consumer Electronics Association (CEA). Consumer confidence in technology fell slightly from the Index released in September.
The Index of Consumer Expectations (ICE), tracking consumer expectations about the economy, was up 5.5 points in October 2012 to reach 177.7. This was the highest level in almost five years.
The October 2012 ICE is also up 18 points from October 2011, and is at the highest level ever for the month of October since the index was launched in 2007.
"While an abundance of economic uncertainties remain, individuals are generally feeling better about the future," said Shawn DuBravac, CEA chief economist and senior director of research. "Overall sentiment improved in October as some uncertainties lifted. As we've seen in the past two years, consumer sentiment is again rising heading into the fourth quarter."
Consumer confidence in technology spending declined in October 2012, with the Index of Consumer Technology Expectations (ICTE) down 4.7 points to 87.7. The ICTE tracks consumer expectations about technology spending. It was also down slightly year-over-year - 1.9 points lower than in October 2011.
DuBravac said the October decline followed a September spike.
"The spike in September was a result of several key product launches during the month," said DuBravac. "With fewer major launches in October, consumers' inclination to spend on tech slipped slightly. Given our recent forecast for holiday tech spending, we expect sentiment to rise over the next two months."
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