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The jump in Conference Board Consumer Confidence shows temporary cheer in the mind of people on gas prices and stock market
Ratan Sen
Oct. 31, 2006

The jump in Conference Board Consumer Confidence is interesting. People are relived at what they see in gas stations. They are happy to see the Dow going up steadily.

The Conference Board conducts a monthly survey of 5000 households to ascertain the level of consumer confidence.

Only index changes of at least five points should be considered significant. The index consists of two subindexes - consumers'' appraisal of current conditions and their expectations for the future. Expectations make up 60% of the total index, with current conditions accounting for the other 40%.

According to the report, the current conditions are somewhat ok but expectations are actually dismal.

Another interesting historic analytic intelligence – every recession started will increasing confidence within consumers while the fundamentals went bad to worse.


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