What Impact Does the Consumer Confidence Index Have on Policymaking?
Policymakers use the CCI to inform their decisions regarding fiscal and monetary policy. For instance, if the CCI indicates declining consumer confidence, policymakers might consider implementing measures to stimulate the economy, such as lowering interest rates or increasing government spending. Conversely, if the CCI is high, they might take steps to prevent the economy from overheating by tightening fiscal or monetary policies.