It is among the Important indicators of the economic activities’ performance, designed to measure the citizen’s degree of satisfaction with regards to the current economic conditions (such as inflation, employment opportunities, ways of investment, the status of economic policies, the cost of living, etc. ..) as well as the extent of optimism about the evolution of that situation on the short run (a period of one year).
The consumer confidence index has been calculated based on an average of the three sub-indices, namely, (the current economic situation index, the consumer expectations index and the household income index) then the index was placed to its value at the reference period (last quarter of 2014) by by dividing the index by its value at the reference period then multiplying by 100. Whenever the index value rises above 100 points this indicates an index improvement value for the reference period and an increase in the level of optimism regarding the economic situation; the opposite occurs when the index drops below 100, while when the index value is stable at 100, this means neutrality or no change from the reference period.
This methodology has been developed at the Surveys’ Research Centre of the University of Michigan in the United States of America, and it is the methodology that is used in a lot of countries over the world which offers the possibility of an international comparison of the values of the index.
Unit of Measurement:
National Centre for Statistics and Information