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Consumer confidence on the rise

by Consumer Electronic Association Economist and Director of research Shawn DuBravac - 06/01/09 9:14 AM ET

May results for the CEA-CNET Consumer Sentiment Indexes suggest things are looking up as we move towards the back-half of 2009. The CEA-CNET Indexes, which measure consumer confidence in the overall economy as well as in technology and consumer electronics, suggest individuals are becoming more optimistic about their personal financial wellbeing even though they remain trepidatious about future expectations regarding their own employment. These results are consistent with what we are seeing in the broader economy. The stock market has come a long way since the lows seen early in March, though the recessionary impact on the labor market remains pronounced. Though the recession endures, consumers are showing a stronger inclination towards spending on tech than they have in several months. May results suggest individuals have higher expectations around both buying technology and spending more on technology in the coming months. While the recession is likely to persist into the Fall and the economic impact will continue long beyond that, things are looking marginally better than in recent months and consumers are consequently feeling more optimistic about the future as May results for the CEA-CNET Consumer Sentiment Indexes illustrate. These results further reinforce the idea of green shoots on the horizon. While there is still much economic healing to come, the consumer’s outlook has improved and the first steps of a recovery are underway.

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $172 billion U.S. consumer electronics industry. More than 2,200 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion and the fostering of business and strategic relationships. CEA also sponsors and manages the International CES – Where Entertainment, Technology and Business Converge. All profits from CES are reinvested into CEA’s industry services. Find CEA online at www.CE.org.