Consumer Confidence vs. Consumer Sentiment in 2025: Key Differences and Insights

Understanding Consumer Confidence and Consumer Sentiment in 2024

Investor attention frequently centers on two vital monthly surveys that gauge the mood and behavior of American consumers. Given that consumer spending drives approximately two-thirds of the U.S. economy, monitoring these indicators is crucial for predicting economic trends.

Essential Highlights

• The Consumer Confidence Index (CCI) and the Michigan Consumer Sentiment Index (MCSI) are the primary gauges of American consumer optimism.
• Both indices are updated monthly, offering timely insights.
• They collectively reveal whether consumer attitudes toward spending are improving or declining over time.

Often used interchangeably, "consumer confidence" and "consumer sentiment" actually refer to two distinct monthly surveys conducted by different organizations. Both assess how Americans perceive their current financial situation and their outlook on future economic conditions, indicating their willingness to spend.

Consumer Confidence Index (CCI)

Published by the Conference Board, a nonprofit business research group, the CCI surveys approximately 3,000 households across all nine U.S. census regions. The survey evaluates five key areas:

• Current business conditions
• Business outlook for the next six months
• Current employment status
• Employment expectations for the next six months
• Projected family income over the next six months

The CCI is released on the last Tuesday of each month, providing a comprehensive snapshot of consumer confidence nationwide.

Michigan Consumer Sentiment Index (MCSI)

Conducted by the University of Michigan, the MCSI surveys 500 households nationally to capture consumer expectations about the overall economy. It covers seven categories:

• Current Economic Index
• Personal finances at present
• Conditions for purchasing durable goods
• Expected Economic Index
• Expected personal finances
• Business conditions over the next year
• Business conditions over the next five years

Distinguishing Factors Between CCI and MCSI

Investors interpret both indices similarly: an increase signals greater consumer willingness to spend, while a decrease suggests tightening budgets. However, short-term discrepancies between the two can occur due to:

• Different survey timings—external events like sudden gas price hikes or stock market fluctuations can influence results.
• Sample size and question depth—the Conference Board surveys a larger group with broader questions, whereas the Michigan survey is smaller but more detailed.

Experts note that the Conference Board’s CCI is often more sensitive to labor market trends and job security, while the Michigan MCSI more accurately reflects immediate consumer concerns such as fuel prices and personal finances.

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