Because consumer spending drives two thirds of the US economy, consumer confidence, sentiment and expectations have the ability to move stock and bond prices and are use to predict economic growth. They tend to be leading indicators, meaning they improve before the economy turns around.
Together, my students are a good sample of the college population in the state of Massachusetts. By analyzing how you and your family feel about the economy, we may be able to predict whether the Massachusetts economy will improve, stay the same, or worsen over the next few months. So, let’s try a little experiment this week!
How do you and your family feel about the Massachusetts economy today. Do you feel the economy is growing? Do you think the employment situation is improving? Are you planning on spending more this holiday season than you spent last year? Do you have more access to credit than you had last year?
I will let you know the results next week.
