- noun the confidence that consumers have in the economy. f their confidence falls it can result in a decrease in economic performance.
- A descriptive measurement term suggesting how the average consumer feels about the state of the economy. Usually it's used to describe people's general optimism; but it can also relate to attitudes of pessimism. When people feel good about their economic circumstances, they tend to spend more money. This becomes a powerful impetus in the overall trend in growth because profits increase as sales rise. Rates of spending can influence the value of the dollar on Forex markets.