Consumer confidence is an important measure of how the customers so many small businesses rely on are feeling about the economy and the world of business, but it’s not the most reliable measure.
I add that caveat because consumer confidence has taken a dip in July in the monthly University of Michigan and Thomas Reuters index. The index decreased from 84.1 in June to 83.9, a decrease that surprised economists who posited that a strong jobs report and a healthy small business community would help.
The important thing is to not let that dip scare you. We’re talking about a relatively small decreases in confidence, and these numbers are still high compared to a year ago, much less the heart of the recession. While we’re not back to the golden days and boom times before the banks came crashing down, people are spending, and it’s not a bad time to be a small business. Don’t make any major changes to your plans based on this one month.
Do monitor this trend, however. A few months of this might be cause for concern.
How much stock do you put in consumer confidence reports?