CEA: Consumer Confidence in Economy, Tech Declines Slightly in July26 Jul, 2011 By: Erik Gruenwedel
Ongoing effects from the recession and concerns on the U.S. debt limit prompt consumers to scale back spending on electronics
Consumer willingness to spend money on household technology and related products dipped 1% to 159.1 in July, according to the latest indexes from the Consumer Electronics Association.
The CEA Index of Consumer Expectations measures consumer expectations about the broader economy. The index carries a maximum value of 300 and a minimum value of 100. The indexes measure how consumers perceive the overall health of the economy and the outlook for technology spending. Both indexes focus on consumer perceptions of the future.
Separately, the CEA Index of Consumer Technology Expectations measures consumer expectations about technology spending. The index carries a maximum value of 200 and a minimum value of zero. In July, consumer confidence in spending on CE products fell about 2.5 points to 79.8, which represents a slight dip from overall consumer confidence in tech spending over the past few months.
“Consumer sentiment deteriorated further this month as the inability of Congress to raise the debt ceiling heightens consumer uncertainty,” said Shawn DuBravac, chief economist and director of research with the CEA. “Given the recent soft patch in the economy, consumers remain jittery. There are some signs, however, that the sentiment around employment and the labor market generally is improving slowly.”