How Does Consumer Confidence Affect Stocks & ETFs?

The Consumer Confidence Index surveys 5,000 US households on their assessment of current business and employment conditions and their expectations for the next six months. The Present Situation Index and Expectations Index are reported separately.

Consumer sentiment drives spending decisions. A sharp drop in confidence often precedes pullbacks in discretionary spending, which can hit retail, travel, and luxury stocks. The expectations component is a leading indicator included in the Conference Board's Leading Economic Index.