Abstract
This paper investigates the mutual predictability between the Index of Consumer Sentiment and non-attitudinal economic indicator using linear regressions on aggregate time-series data for several EEC member countries. In the first part the ICS is regressed on economic indicators to show that a sizeable part of the fluctuations in the ICS are captured by the economic series. In a second part, new passenger automobile registrations are regressed on the ICS and on economic indicators to show that the ICS is al most a marginal determinant of consumer spending on new passenger cars. The general conclusions derived from the study strengthen the findings from previous studies which are sceptical about the usefulness of the ICS in the explanation and forecasting of discretionary consumer spending.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
