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Consumer Confidence Report

The Consumer Confidence Report is a government sponsored report measuring the force of consumer sentiment toward current economic growth. The monthly survey of 5,000 households is widely viewed as a sort of economic barometer. A strong reading indicates current and anticipated continuation of strength in business conditions and overall economic health. If economic expansion is slowing, this can be one of the first reports to indicate such. Often a weakening report is viewed as a pre-cursor to other indications of economic frailty, such as corporate downsizing, real-estate weakness and worst case scenario, a recession. Since consumers make up approximately two thirds of the nations economic activity, economists pay close attention to variances in the monthly report. Generally, unless there is a significant change in the numbers, i.e., two to five points, the report raises little interest or concern.