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Expectations Index

   Also found in: Acronyms 0.01 sec.
Expectations Index
A survey of 5,000 households in which respondents are asked their impressions and sentiments regarding economic conditions in the coming six months. Specifically, they are asked their impressions on employment prospects, business opportunities, and, perhaps most importantly, their expected spending habits. The Expectations Index is the most important component of the Consumer Confidence Index, which businesses use to help make investment decisions. For example, if the Expectation Index shows that consumers are unlikely to spend more on luxury items in the next six months, the leisure industry will probably not build new hotels in that time period. See also: Friedman unit.


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But there was a 2 per cent rise in the number of people who expect there to be few jobs available six months down the line at 52 per cent, which helped to reduce the group's expectations index from 108 to 106 in October.
For example, in Germany, the new orders to inventory ratio in the PMI remains extremely high and the IFO business expectations index has almost recovered to the post-1991 average.
The Consumer Technology Expectations index also climbed this month, rising more than 1.
 
 
 
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