from economicgreenfield.com
Definition
The Index of Consumer Sentiment (ICS) — or economic well-being — was developed at the University of Michigan Survey Research Center to measure the confidence or optimism (pessimism) of consumers in their future well-being and coming economic conditions.
The index measures short- and long-term expectations of business conditions and the individual’s perceived economic well-being.
Evidence indicates that the ICS is a leading indicator of economic activity as consumer confidence seems to precede major spending decisions. [1]
References
- American Marketing Association, AMA Dictionary.