Consumer Confidence Down From July to August; Tech Spending Higher Year-Over-Year since 2007, According to CEA Index
It's clear consumers remain cautious in their approach to spending as the economic recovery limps forward.
Arlington, Va., August 28, 2012 -Consumer confidence in the overall economy and technology spending both fell in August, according to the latest CEA Index released today by the Consumer Electronics Association (CEA)®.
Consumers are feeling less confident about the overall economy than they were a month ago. The CEA Index of Consumer Expectations (ICE) fell 4.2 points in August. The ICE, which measures consumer expectations about the broader economy, reached 168.7 this month, the lowest level since May. Yet, the ICE is nearly nine points higher than August last year.
"Consumer sentiment around the overall economy ebbed lower in August after steady rises over the prior two months," said Shawn DuBravac, CEA's chief economist and senior director of research. "The decline in sentiment over the summer months parallels the slide we saw in 2011, though not as sharply."
Consumer confidence in technology spending also declined in August. The CEA Index of Consumer Technology Expectations (ICTE) fell 0.6 points to 87.5. The ICTE, which measures consumer expectations about technology spending, remained higher year-over-year and recorded its highest August level, up by 9.3 points since the CEA Index was introduced in 2007.
"It's clear consumers remain cautious in their approach to spending as the economic recovery limps forward," said DuBravac. "However, with the highest technology sentiment levels in August since 2007, the consumer is potentially well positioned as we move closer to the holiday season."
The CEA Indexes comprise the ICE and ICTE, both of which are updated on a monthly basis through consumer surveys. New data is released on the fourth Tuesday of each month. CEA has been tracking index data since January 2007. To find current and past indexes, charts, methodology and future release dates, log on to CEAindexes.org.
The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $195 billion U.S. consumer electronics industry. More than 2,000 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion, standards development and the fostering of business and strategic relationships. CEA also owns and produces the International CES - The Global Stage for Innovation. All profits from CES are reinvested into CEA's industry services. Find CEA online at www.CE.org and www.DeclareInnovation.com.