What is the meaning of Consumer Confidence Index?

Released each month by The Conference Board, an independent business research organization, the' Consumer Confidence Index' measures how a representative sample of 5, 000 US households feel about the current state of the economy, and what they anticipate the future will bring. The survey focuses specifically on the participants' impressions of business conditions and the job market. Economic observers and policymakers follow the index because when consumer attitudes are positive because they think the economy is growing and they have a sense of job security they are more likely to spend money, which contributes to the very economic growth they anticipate. But if consumers are worried about their jobs, they may spend less, contributing to an economic slowdown.