Survey: Consumer Confidence Rises, but Tech Spending Falls

Authored by Mark Hefflinger on March 24, 2009 - 11:51am.

San Francisco - Although consumer confidence in the overall economy increased in March to its highest level in more than a year, technology spending continued to fall, according to new figures released on Tuesday by the Consumer Electronics Association (CEA) and technology publisher CNET.

The CEA-CNET Index of Consumer Expectations (ICE) -- which measures consumer expectations about the overall economy -- jumped nearly seven points from last month to end three straight months of decline.

But while consumers are gaining confidence in the overall direction of the economy, confidence in consumer electronics and technology dropped for the fourth straight month.

The CEA-CNET Index of Consumer Technology Expectations (ICTE) fell more than a point from last month, marking the lowest level since its inception in Jan. 2007.

"With recent increases in the stock market and some signs of firming in the real estate market, consumers are beginning to indicate they'll be better off financially over the next year," said Shawn DuBravac, the CEA's economist and director of research.

"Still, until consumers are more confident in an economic recovery, we expect consumer spending to remain muted."

http://www.ceacnetindexes.org