Deep Dive: What Is the Consumer Confidence Index — How It's Measured, Why It Moves Markets, and What It Means for Your Portfolio
Every month, a single number captures the collective mood of American consumers — and Wall Street pays close attention. The Consumer Confidence Index (CCI), published by The Conference Board, is one of the most closely watched economic indicators in the United States. When confidence rises, it signals that households are willing to spend, borrow, and invest. When it falls, it often foreshadows economic slowdowns, reduced corporate earnings, and market turbulence. For investors, the CCI is more than a sentiment gauge — it's a leading indicator with a track record of anticipating shifts in consumer spending, which accounts for roughly 70% of U.S. GDP. Understanding how the index works, what drives its movements, and how to interpret its signals can give you a meaningful edge in portfolio positioning. With consumer sentiment currently in flux — the University of Michigan's Consumer Sentiment Index read 56.4 in January 2026, well below its February 2025 level of 64.7 — the question of where consumers stand has rarely been more relevant.