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ADB: An abbreviation that stands for either the African Development Bank the Asian Development Bank. The African Development Bank is a regional multilateral development institution engaged in promoting the economic development and social progress of its member countries in Africa. The Bank, established in 1964, started functioning in 1966 with its Headquarters in Abidjan, Cote d' lvoire. The Bank borrows funds from the international money and capital markets. Its shareholders are the 53 countries in Africa as well as 24 countries in the Americas, Europe, and Asia. The Asian Development Bank is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific that engages in mostly public sector lending for development purposes in its developing member countries. They pursue this goal by helping to improve the quality of people's lives providing loans and technical assistance for a broad range of development activities. ADB raises fund through bond issues on the world's capital markets but they also rely on members' contributions. The ADB was established in 1966 and has its headquarters in Manila, Philippines. As of September of 2003, the ADB had 58 member countries.
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                           CONSUMER CONFIDENCE INDEX: A measure of consumer attitudes, preferences, and expectations concerning the state of the economy and business cycle conditions that is compiled each month by The Conference Board. The Conference Board is also responsible for compiling the leading, coincident, and lagging economic indicators. The Consumer Confidence Index is one of two primary measures of consumer attitudes. The other is the Index of Consumer Sentiment developed by the University of Michigan. The Consumer Confidence Index is a notable measure of consumer attitudes that has consistently demonstrated its value as a predictor of future economic conditions.This index is important to the notion that consumer expenditures are a critical component of aggregate demand for the macroeconomy. Changes in consumer confidence and attitudes affect consumer expenditures, which then affect the overall performance of the economy. In other words, if consumers are more confident, then they spend more and the economy is likely to expand. If consumers are less confident, then they spend less and the economy is likely to contract. Consumer Confidence SurveyThe Conference Board sponsors a monthly Consumer Confidence Survey that is conducted with a randomly selected, representative sample of 5,000 U.S. households. Each household is asked five simple questions dealing with:- An appraisal of current business conditions.
- Expectations of business conditions in six months.
- An appraisal of current employment conditions.
- Expectations of employment conditions in six months.
- Expectations regarding total family income in six months.
Each question has three possible responses--positive, neutral, or negative. The responses are converted into "relative" values by dividing the proportion of households responding "positive" by the total proportion of those responding either "positive" or "negative."In addition to the five questions used to calculate overall consumer confidence, the Consumer Confidence Survey also poses questions dealing with intended purchases for automobiles, houses, and major appliances. Other questions inquire about vacation plans and expectations of inflation, interest rates, and stock market prices. The survey is conducted in such a way that it provides reliable information that can be differentiated by age, income, and geographical location. A Family of ThreeThe five questions are used to generate three separate confidence indices. - Consumer Confidence Index: This is the most noted index generated by the study. It is a simple average of all five consumer attitude questions indexed against the relative value for 1985. A Consumer Confidence Index of 85, for example, means that the current level of consumer confidence is 85 percent of the level measured in 1985.
- Present Situation Index: This index is calculated as an average of the relative responses to questions 1 and 3. Both questions reveal how respondents feel about current business and employment conditions. It too is indexed against the relative value for 1985.
- Expectations Index: This index is calculated as an average of the relative responses to questions 2, 4, and 5. These three questions reveal expectations that respondents have about future business and employment conditions and personal income. It is indexed against the relative value for 1985, as well.
Recommended Citation:CONSUMER CONFIDENCE INDEX, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: April 1, 2023].
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Today, you are likely to spend a great deal of time touring the new suburban shopping complex hoping to buy either a genuine fake plastic Tiffany lamp or a microwave over that won't burn your popcorn. Be on the lookout for jovial bank tellers.
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Potato chips were invented in 1853 by a irritated chef repeatedly seeking to appease the hard to please Cornelius Vanderbilt who demanded french fried potatoes that were thinner and crisper than normal.
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"If we all did the things we are capable of doing, we would literally astound ourselves." -- Thomas Edison
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IV
Instrumental Variables
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