Consumer confidence has taken a hit for the second month in a row. This is not particularly good news on the corporate finance front. With consumers not terribly confident about the economy, it means that they are less likely to spend money. This means that the cash flow into many companies is likely to remain low.
The consumer confidence data is also having an effect on how companies view the possibility of a rebound in spending for the holidays. Many businesses have been hoping that holiday shopping would help get things going. However, with consumers still wary about economic recovery, it …read more

Although the recession is supposedly a thing of the past and many analysts proclaiming that the United States economy is on the road to recovery, consumers apparently aren’t fully buying it. In fact, consumer confidence fell in September compared to the numbers in August, according to a consumer confidence survey.
The consumer confidence survey, which was conducted by private research group The Conference Board, should consumer confidence for September was 53.1. Following the August numbers coming in at 54.5, most experts believed that consumer confidence was to rise more than 2.5 points in September. That obviously didn’t happen.
The biggest culprit is …read more

Consumer sentiment is making marked improvements. Does this mean businesses could see more income soon?

Consumer confidence and other positive economic data are not enough to send the stock market higher.

News outlets reported that an increase in consumer confidence sent the stock market higher today. What exactly is consumer confidence and why is it so important?
The Consumer Confidence Index (CCI) is supposed to reflect American sentiment regarding the economy
Sentiment ranges from pessimistic to optimistic (with neutral in between), and is gauged by the Conference Board. The Board surveys 5,000 households, for information on their saving and spending activities.
According to Wikipedia, forty percent of the index’s value is based on opinions about current conditions and the remaining sixty percent is based on future economic expectations.
The index is based on a benchmark value of …read more

Whenever signs emerge to give hope for a relatively quick economic recovery, it seems that other factors pop up just as quickly to dash those hopes. This time, new statistics showing a drastic drop in consumer confidence and a similarly steep drop in prices have managed to rain on our parade.
 
Released on Friday, the monthly Reuters/University of Michigan Surveys of Consumers demonstrated a decrease of 66 to 63.2 on the index used to measure consumer confidence in August. While the statistic is revealing on its own, the more important part of the equation is that most analysts expected consumer confidence …read more

Small business people are an optimistic bunch.  They must be optimistic to keep going in the face of adversity.  Small business confidence improved in April, according to Discover Financial Services Small Business Watch.
Discover’s survey revealed that small business confidence climbed to its highest level in 14 months in March.  The monthly index increased more than 10 points, and represents the third consecutive monthly increase in economic confidence among small business owners.
Some highlights of the survey point out the high levels of confidence of small business owners:

The number of small business owners who say the economy is getting better nearly …read more

According to the Conference Board’s Consumer Confidence Index, American consumer confidence jumped in April from 26.9% to39.2%. Short-term outlook significantly improved, as far fewer people anticipate business orsening over the next six months. The percentage of people expecting the economy to improve is still low at 15.6%, but that number too is up from 9.6% in March.
People also had a more optimistic view of employment, according to the report. The percentage of people expecting the job outlook to improve saw a boost from just 7.3% to 13.9%, and fewer peopl expect to see the job market to get even worse …read more