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Definition

The Index of Consumer Sentiment (ICS)—or economic well-being—was developed at the University of Michigan Survey Research Center to measure the confidence or optimism (pessimism) of consumers in their future well-being and coming economic conditions. The index measures short- and long-term expectations of business conditions and the individual's perceived economic well-being. Evidence indicates that the ICS is a leading indicator of economic activity as consumer confidence seems to precede major spending decisions.[1]

References

  1. ^ American Marketing Association. Dictionary. <https://www.ama.org/resources/Pages/Dictionary.aspx> (cited 27 May 2015).

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