Question

Why is consumer confidence such a closely watched indicator? What do you think is needed to get consumers to be more confident so that they make spending decisions on houses, cars, etc

Answer 1

Consumer confidence is very important in order to make any policy fully effective. If there is no consumer confidence , then any policy whether fiscal or monetary may fail.

In order to gain consumer confidence, Government should be transparent, reliable, credible and follow its own indications. Government should follow all rules and regulations and work in favour of social welfare.

If consumers are confident, they will spend, save, consume, etc. And make all the policies of government effective.