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 ?
The services sector survey: expectations index, the manufacturing surveyos expectations index, stock prices, the consumer durable goods production index, the exports volume index, and the terms of trade index contributed positively to the index in October.
7 points in March, and the second survey will compare changes in consumer sentiment including the expectations index, current economic situations and family income index.
Likewise, optimism in the future performance of the economy also increased in March - the expectations index was also up three points, returning it to a level seen in October 2006.
8 last month, and the Expectations Index falling to 83.
The association's expectations index, which measures restaurant operators' six-month outlook, increased 1.
9 in July while the expectations index also went up - to 49.
While the decline in the Expectations Index may well be related to the unresolved election, the Present Situation Index posted an increase suggesting that consumers do not foresee an end to economic growth.
The Index consists of two components -- the Current Situation Index and the Expectations Index.
The consumer expectations index is normally driven by labor market conditions, which appear to be gradually improving based on the latest dip in initial jobless claims.
The Expectations Index, however, bucked the downward trend, advancing to 108.
Floor space started and total loans issued by financial institutions made the largest positive contributions to the index, followed by the consumer expectations index.
The consumers survey: expectations index, the services sector survey: expectations index, the swap rate (inverted), the manufacturing survey's expectations index, stock prices, and the consumer durable goods production index all contributed negatively to the index in September.