Courses : Intermediate Macroeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Consumer Confidence Index The Consumer and Business Confidence Index is a measure to measure the level of consumer and business confidence in a country's economy. This index is used to measure positive or negative sentiment or views on current and future economic conditions. Thus, this index is very important to predict the tendency of consumers and entrepreneurs in making investment and consumption decisions in the future. Some of the characteristics of the Consumer and Business Confidence Index include: o Measures outlook on current and future economic conditions. o Measured periodically, usually every month or every three months. o The index is a number that reflects a positive or negative view of economic conditions. o This index is used as an indicator to predict economic growth and investment and consumption decisions in the future. o The consumer and business confidence indices can affect the economy as a whole because the decisions of consumers and entrepreneurs greatly influence the demand and supply in the market. The Consumer and Business Confidence Index is a measure to measure the level of consumer and business confidence in a country's economy. This index is used to measure positive or negative sentiment or views on current and future economic conditions. Thus, this index is very important to predict the tendency of consumers and entrepreneurs in making investment and consumption decisions in the future. Some of the characteristics of the Consumer and Business Confidence Index include: o Measures outlook on current and future economic conditions. o Measured periodically, usually every month or every three months. o The index is a number that reflects a positive or negative view of economic conditions. o This index is used as an indicator to predict economic growth and investment and consumption decisions in the future. o The consumer and business confidence indices can affect the economy as a whole because the decisions of consumers and businesses greatly affect the demand and supply in the market. The Consumer and Business Confidence Index is an indicator used to measure the level of consumer and business confidence in a country's economy. This index shows the views of consumers and businesses on current and future economic conditions. Some of the features and characteristics of the Consumer and Business Confidence Index include: 1. Involve surveys: The Consumer and Business Confidence Index is based on surveys conducted by government or private agencies that aim to measure consumer and business perceptions of economic conditions. 2. Focus on confidence: This index looks not only at economic data, but also measures the confidence consumers and businesses have in making decisions about spending and investing. 3. Measures expectations: The Consumer and Business Confidence Index also measures consumer and business expectations about the future of the economy, including labor market conditions, inflation, and economic growth. 4. Based on other indicators: The Consumer and Business Confidence Index can also be influenced by other indicators, such as interest rates, political stability, and changes in government policies. 5. Can predict economic growth: This index can be an early indicator that can predict future economic conditions, because consumer and business beliefs can influence consumer and business decisions in spending money or making investments. Examples of measuring the Consumer and Business Confidence Index include: 1. United States Consumer Confidence Index: Measured by the University of Michigan in certain months each year through a survey of a number of consumers. The survey includes questions about financial conditions, employment, and expectations of future economic conditions. 2. German Business Confidence Index: Measured by the ifo Institute for economic research monthly through a survey of around 9,000 businesses in Germany. This survey includes questions about current business conditions, future business expectations, and short-term business actions. 3. Australian Consumer Confidence Index: Measured by Westpac Banking Corporation and the Melbourne Institute of Applied Economic and Social Research on a monthly basis through a survey of around 1,200 randomly selected respondents across Australia. This survey includes questions about financial conditions, employment, and expectations of future economic conditions.