Surveys Give Sharply Different Assessments of Consumer Confidence

Two surveys released within a half hour of each other Tuesday morning painted sharply different pictures about consumer confidence in the U.S. economy during the month of December. By far, the more upbeat was CEA’s Index of Consumer Technology Expectations, which CEA says measures consumer sentiment regarding technology purchases. It jumped eight points since November to the highest level since CEA started tracking such data three years ago, CEA said. “Consumer confidence in the overall economy also showed improvement this month,” CEA said, reaching its highest level since June 2009.

"December set a new high for tech spending sentiment, suggesting individuals closed out the holiday season with tech on their minds,” said Shawn DuBravac, CEA chief economist and director of research. “This late jump in tech sentiment suggests a strong holiday push for technology spending in December.” CEA bases its findings on interviews with a representative sampling of 1,000 consumers.

In contrast to the CEA report, the Conference Board’s Consumer Confidence Index, which had improved in November, decreased slightly in December, the group said Tuesday. The Conference Board’s survey is based on a representative sample of 5,000 U.S. homes that receive their questionnaire by mail. “Despite this month’s modest decline, consumer confidence is no worse off today than it was a year ago,” the Conference Board said. “Consumers’ assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious. Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate."

Consumer intentions to buy a new TV set fell slightly in December from November, the Conference Board said. Of the 5,000 homes surveyed, 8.1 percent said they plan to buy a new TV set in the next six months compared with 8.4 percent in November, 8 percent in October and 7.4 percent in December 2009, it said. The survey doesn’t ask about other CE products, but found that consumer intentions to buy a new car fell sharply in December from November, as did plans to buy a major new kitchen appliance.