Consumer confidence after September 11
The terrorist attacks on September 11 dealt a serious blow to the U.S. economy. The damage included the tragic loss of human life, massive property destruction, and disruptions to the travel and shipping industries. But immediately after the attacks, many observers also worried about the possible harm to business and consumer confidence. Although the effects on business confidence are hard to measure, regular surveys of households make it easier to assess the effects on consumer confidence. These surveys show that consumer confidence was surprisingly resilient.> Faced with this resilience, forecasters and policymakers struggled to interpret the movements in consumer confidence. Did consumers quickly return to more normal economic behavior even though they were shocked by the terrorist attacks? Or was the resilience somehow illusory? Were measures of consumer confidence actually lower than would be expected based on prevailing economic conditions? The answers to these questions might have implications about the economic outlook or the proper settings for monetary and fiscal policy.> Garner examines the impact of the terrorist attacks on consumer confidence at the end of 2001. He finds that the terrorist attacks did not cause a clear weakening of consumer confidence after September 11. As a result, the consumer confidence indexes maintained a fairly normal relationship to other economic indicators and did not contain much new information for forecasters and policymakers. The resilience of consumer confidence may have offered some assurance, however, that the worst fears about the economic outlook would not be realized.
Volume (Year): (2002)
Issue (Month): Q II ()
|Contact details of provider:|| Postal: One Memorial Drive, Kansas City, MO 64198|
Phone: (816) 881-2254
Web page: http://www.kansascityfed.org
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jason Bram & Sydney Ludvigson, 1998.
"Does consumer confidence forecast household expenditure? a sentiment index horse race,"
Economic Policy Review,
Federal Reserve Bank of New York, issue Jun, pages 59-78.
- Jason Bram & Sydney Ludvigson, 1997. "Does consumer confidence forecast household expenditure?: A sentiment index horse race," Research Paper 9708, Federal Reserve Bank of New York.
- Michael C. Lovell, 1975. "Why Was the Consumer Feeling So Sad?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 6(2), pages 473-479.
- Dean Croushore & Tom Stark, 1999. "Does data vintage matter for forecasting?," Working Papers 99-15, Federal Reserve Bank of Philadelphia.
- Nicholas S. Souleles, 2001. "Consumer Sentiment: Its Rationality and Usefulness in Forecasting Expenditure - Evidence from the Michigan Micro Data," NBER Working Papers 8410, National Bureau of Economic Research, Inc.
- Adrian W. Throop, 1992. "Consumer sentiment: its causes and effects," Economic Review, Federal Reserve Bank of San Francisco, pages 35-59.
- Eric M. Leeper, 1992. "Consumer attitudes: king for a day," Economic Review, Federal Reserve Bank of Atlanta, issue Jul, pages 1-15.
When requesting a correction, please mention this item's handle: RePEc:fip:fedker:y:2002:i:qii:n:v.87no.2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (LDayrit)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.