Explore BrainMass

Explore BrainMass

    Consumer Confidence as an Economic Indicator

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What are the shortcomings in relying on consumer confidence as an economic indicator for analysis?

    (Need some extra insight, having problems concluding that this is a bad thing to do.)

    © BrainMass Inc. brainmass.com June 3, 2020, 9:01 pm ad1c9bdddf
    https://brainmass.com/economics/economic-indicators/consumer-confidence-economic-indicator-162987

    Solution Preview

    What appears to be an increase in consumer confidence can be random fluctuation in spending. The index is based on surveys of how likely consumers are to spend money. They assume that consumers are "typical" and can be predicted based on their answers. However, "typical" consumers are becoming scarce. Income ...

    Solution Summary

    This solution discusses consumer confidence as an economic indicator.

    $2.19

    ADVERTISEMENT