Page "Consumer Confidence Index" Paragraph 15

A month-on-month decreasing trend suggests consumers have a negative outlook on their ability to secure and retain good jobs.

Thus, manufacturers may expect consumers to avoid retail purchases, particularly large-ticket items that require financing.

Manufacturers may pare down inventories to reduce overhead and / or delay investing in new projects and facilities.

Likewise, banks can anticipate a decrease in lending activity, mortgage applications and credit card use.

When faced with a down-trending index, the government has a variety of options, such as issuing a tax rebate or taking other fiscal or monetary action to stimulate the economy.