Can Consumer Surveys Tell Us Where the Economy Is Headed?
In order to gain insight into the future state of an economy, many economists refer to a variety of consumer and business surveys. Randomly selected consumers and businessmen are asked to provide their views about where the economy is heading. Thus, if a survey shows that the majority of the surveyed express optimism it is regarded as good news for the economy. Conversely, if the majority of the surveyed are pessimistic it is taken as a bad omen for future economic activity.