CEA: Highest Consumer Confidence in Nearly Three Years25 Jan, 2011 By: Erik Gruenwedel
Consumer confidence in the economy rose to its highest point in three years this month, according to new data released by the Consumer Electronics Association.
The CEA Index of Consumer Expectations (ICE) rose one point in January to 175.7. That’s the highest the ICE has been since February of 2008. The ICE, which measures consumer expectations about the broader economy, is up more than nine points from this time last year.
Greater consumer confidence should translate into increased spending on connected HDTVs, Blu-ray Disc players, portable media devices and 3D, according to the CEA.
“The economy continues to improve and individuals are taking note,” said Shawn DuBravac, CEA’s chief economist and director of research. “With consumer sentiment higher than it has been since early 2008 … consumers are feeling better about the economy and their financial futures.”
Consumer confidence in technology recorded its highest rating ever for the month of January, despite dropping from last month’s record high. The CEA Index of Consumer Technology Expectations (ICTE) fell 5.6 points to 88.1 this month. The ICTE, which measures consumer expectations about technology spending, is up more than four points from this time last year.
“Spending on technology is influenced by regular seasonal purchasing patterns and in December, technology was atop every consumer’s holiday wish list,” DuBravac said. “While a drop from December to January has happened every year of the index, the record high this January suggests consumers are still showing a willingness to purchase tech.”