👨‍🎓 Consumer Confidence - A Key Economic Indicator

**22/52** Macro Mornings Education

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👨‍🎓 This is part of a 52-week series on macroeconomics designed to build your knowledge step by step. Feel free to catch up on previous emails here if you'd like to start from the beginning!

Dear all,

In our last email, we explored the unemployment rate 📉 as a critical measure of economic health.

Today, let’s focus on another important macroeconomic indicator - consumer confidence 🤝 - and how it reflects the mood and expectations of consumers about the economy.

Consumer confidence is a measure of how optimistic or pessimistic consumers are about the future state of the economy, particularly regarding their financial situation, employment prospects, and spending intentions.

It’s a key indicator because consumer spending 🛍️ accounts for a significant portion of economic activity, especially in developed economies like the United States, where it makes up about 70% of GDP 📊.

Here’s why consumer confidence matters and how it impacts the economy:

Underst…