What is the consumer's sentiment index?

Consumer sentiment is a tool that is used to determine the general feelings of the economy of a specified nation. This continuing scale of consumer confidence is based on the use of various research resources to reveal feelings about the economy between the population, such as using telephone conversations, direct postal campaigns, and recently surveys conducted over the Internet. Several countries are home to official and unofficial indices of this type, with the oldest existing consumer sentiment in the United States.

located on the University of Michigan, the basic methods used by the consumers' sentiment index were first developed and implemented at the end of the 40 years. Under George Katona, specific criteria for the collection, qualification and measurement of consumer confidence were formulated. This work has led to the creation of an index of consumer or ICS as a vehicle to get opinions on cross -cutting storage for the current economy and their opinionsto stability or its shortage.

In the early 1960s, the consumer's sentiment index was improved to function using a scale of 100 as peace. Since then, scientists who build data that results in an index have been using telephone conversations with households across the country extensively. Other methods such as bulk mail and Internet -based applications have also been tested, but telephone interviews are still the most effective source of qualified data.

6 The data collected will also often include opinions on what consumers expect to become a long -term economy. The index interviews people in a number of places and economic situations as a reliable tool to measure consumer sentiment in general.

There are several frequently cited applications for data contained in the consumer sentiment index. Index is generally considered usefulTool for government, business and investors. The government can take advantage of the results of the monthly published index to understand what people think of a general economic climate and whether they expect things to improve, worsen or remain the same. Businesses can use data to identify consumer needs and move them to meet it. Investors can use data to find consumer trends that can affect the value of different securities and buy and sell shares accordingly.