Consumer Sentiment and Confidence during Post-Crisis 2008

Abstract

This chapter attempts to find out the impact of recent recession on the consumption pattern through consumer confidence index (CCI) of selected developed and developing economies. This chapter examines how the macroeconomic variables like growth rate, inflation, unemployment rate and debt-GDP ratio etc. influence the consumer's confidence during 1996-2012, in which the crisis occurred in 2008. Moreover, in this chapter we have explained the role of consumptions sentiment in terms of consumer confidence regarding future expectation. Apart from that, from the panel data set of 11 countries, we have found that more or less all the economies including the United States have experienced downward movement of consumer's confidence in the presence of the great recession of 2008-2009.