Good Question: How Is Consumer Confidence Measured?
MINNEAPOLIS (WCCO) -- This week, new numbers will be released that measure how Americans feel about the economy. They'll also look at how we feel about our own financial situation.
The numbers are among the highest they've been in 15 years. So, how is consumer confidence measured? Good Question.
There are two main indexes in the U.S. -- consumer sentiment and consumer confidence. One is done with a phone survey , the other by mail. Both have been on the rise since the recession in 2008.
Tom Stinson is Minnesota's former state economist.
"This is just helping business find out what's on your mind, what your attitudes are," Stinson said.
Businesses use it to determine inventory or if they should have an extra sale.
Stinson said consumer confidence does not necessarily mean a good economy.
"We need to know more," he said. "Employment, that's the key, how many jobs are there, what's happening to those jobs, what's the unemployment rate."
The smaller phone survey has more detailed questions. It also breaks down the numbers by political party. The consumer confidence in the last month with the Democrats was very different than the consumer confidence of Republicans.
"And when Obama was first elected, I bet it was the opposite," Stinson said.
Last month's numbers showed consumer confidence at a 15-year high. Tuesday's reading is expected to fall slightly, but still remain at a healthy level.