Raleigh Residential Real Estate – An interesting Raleigh Real Estate Market Indicator – The Consumer Confidence Index

Raleigh Residential Real Estate – An interesting Raleigh Real Estate Market Indicator – The Consumer Confidence Index

One of indicators that those who are involved in investing in the stock market, the buying and selling of real estate or other kinds of investments is the Consumer Confidence Index. The Consumer Confidence Survey that determines the index is based on a representative sample of 5,000 U.S. households. This index is not based upon any kind of reality or scientific measurement of how the economy is actually performing; rather it is based upon the opinions of a random group of 5000 people.

If you read the reports the index has been declining since the summer, but consumers have not lost their holiday spirit and anticipate spending more on gifts this season than they did last Christmas. So despite how they feel about the direction of the economy, at least those surveyed are going to do the opposite. They are going to spend more.

Another facet of the survey covered what consumers are thinking about future jobs. “The outlook for the labor market was also more pessimistic. The percent of consumers expecting more jobs in the months ahead fell to 10.8 percent from 13.3 percent, while those anticipating fewer jobs rose to 23.1 percent from 20.2 percent.”

Again, this is based upon the feelings of these 5,000 people who were surveyed. It is not based upon any scientific evidence. The recent job numbers came in better than anticipated and last months figures were adjusted upward.

So one of the indicators that is used to help in day-to-day decision-making and long-term planning in based upon how 5,000 people feel about things. And those feelings are quite fickle and as we have seen their actions are inconsistent with their thinking.

You can read the November 27 Press Release here: The Consumer Confidence Press Release