CEA: Consumer Confidence in Electronics Up, Economy Down28 Apr, 2009 By: Erik Gruenwedel
Despite another drop in overall consumer confidence in the economy in April, willingness to purchase technology and consumer electronics climbed to its highest level since December 2008, according to a new Consumer Electronics Association-CNET consumer poll.
The CEA-CNET Index of Consumer Technology Expectations (ICTE) rose to 77.4, an increase of more than 10 points from last month. The ICTE is up on a year-over-year basis for the first time since last September.
The indexes measure how consumers perceive the overall health of the economy and the outlook for technology spending.
“While tax season may have caused some consumers to be more careful with their personal finances, they are still looking to spend disposable income on technology and CE,” said Anne Claudio, VP of research at CBS Interactive, which owns CNET. ”The ICTE showed that consumers are more likely this month to buy consumer electronics and spend more on those products than last month. We are hoping the increase in the CE confidence index will result in positive returns for manufacturers.”
Indeed, the CEA-CNET Index of Consumer Expectations (ICE), which measures consumers’ confidence in the overall economy, dipped to 168.5 in April, up nearly three points from April 2008, but down four points from last month.
“Consumers continue to worry about economic uncertainty,” Claudio said. “While we’re seeing indications of overall consumer confidence stabilizing, this month’s decline is still well above the all-time low seen last summer. Consumers continue to be cautious and reactive.”