The Surveys of Consumers of the Survey Research Center at the University of Michigan has measured consumer confidence in the nation’s economy for over sixty years. Founded in 1946 by George Katona, the surveys have stressed the important influence of consumer spending and saving decisions in determining the course of the national economy.
The surveys have proven to be an accurate indicator of the future of the national economy. The Index of Consumer Expectations, our measure of consumer confidence, is included in the Leading Indicator Composite Index developed by the U.S. Department of Commerce. The Index of Consumer Sentiment (consumer confidence) is widely reported in the media each month and is closely watched by government agencies, corporations, and individuals.
Each month, households are randomly selected from the contiguous United States (48 states plus the District of Columbia) to participate in the Surveys of Consumers. In order for the results to accurately represent the opinions of the population of the United States, it is important that each person selected participates. The questions asked cover three broad areas of consumer confidence: personal finances, business conditions, and future buying plans.
The importance of consumer confidence in shaping the course of the economy has been recognized in many countries. Other countries that now regularly monitor consumer sentiment through studies patterned after this survey include: Austria, Australia, Belgium, Canada, China, Denmark, Finland, France, Germany, Great Britain, Greece, Hungary, Ireland, Italy, Jamaica, Japan, Luxembourg, Mexico, Norway, Russia, Spain, Sweden, Switzerland, and Taiwan.