Question

How does the consumer confidence index effect the retail industry?

Answer 1

Consumer confidence index (CCI) reflects the consumers' belief on the current and future performance of the economy. A strong and increasing CCI means consumers expect the economy to boom and thus, their income to increase. So they will increase their consumption, and retail industry will experience boom in terms of sales volume.

Instead, a weak and decreasing CCI means consumers expect the economy to slow down and thus, their income to decrease. So they will decrease their consumption, and retail industry will experience a slow-down in terms of sales volume.