Title: Consumer confidence, expenditure, saving, and credit
Abstract: Both the ability to buy (household income) and the willingness to buy (attitude, expectation) determine consumer expenditure, saving and credit at the aggregate level. The willingness to buy, to save or to borrow, named consumer sentiment, is measured with a set of survey questions. These questions pertain to the evaluation and expectation of the general economic situation of the nation, household finances, inflation, unemployment, a good time to buy, and saving conditions. In this study it is shown that another subset of survey questions provides a better prediction of consumer spending, credit and saving than Katona's Index of Consumer Sentiment. Income is the most important determinant of consumer spending and saving. One of the principal component scores of the evaluation and expectation questions add to the explanation of consumer expenditure, credit, and savings, especially for durable goods and for credit.
Publication Year: 1990
Publication Date: 1990-06-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 104
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