Expectations Index


Also found in: Acronyms.

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.
References in periodicals archive ?
It is composed of two sub-indices, the Byblos Bank/AUB Present Situation Index and the Byblos Bank/AUB Expectations Index.
The shift from a negative to a positive gap between the Expectations Index and the Present Situation Index reflects the impact of relatively better security conditions, as well as the effects of the political dialogue between major parties in the country, and the slight increase in households' purchasing power," the report said.
The Expectations Index is now at its lowest level in three years (March 2003, 61.
The future expectations index also moved down, from 53.
However, the Expectations Index is now at its lowest level since July 2003 when it registered 86.
The Expectations Index, one component of the confidence index that measures consumers' outlook over the next six months, declined to 93.
Statistics Denmark, the Danish state statistics agency, reportedly said on Monday (24 January) that the Danish consumer expectations index increased to 11.
The forward-looking sub-index, the expectations index, improved to 91.
The association's Expectations Index also posted its eighth consecutive monthly increase, which points toward growth in sales, employees and capital expenditures during the next several months.
The Conference Board's consumer confidence index rose briskly in January, with the expectations index and the present situation index showing good gains.
The future expectations index is based on questions that ask for the volume of "calls for bids," the amount of work committed for the next three months, the backlog of remodeling jobs, and the current number of proposals for future work.
Each index is further segmented into current conditions and expectations indices yielding the Private Capital Conditions Index (PCCI), the Private Capital Expectations Index (PCEI), the Small Business Capital Conditions Index (SBCCI), the Small Business Capital Expectations Index (SBCEI), the Middle Markets Capital Conditions Index (MMCCI), and the Middle Markets Capital Expectations Index (MMCEI).