Social and Behavioral Sciences Commons^™

The Usefulness Of Consumer Sentiment: Assessing Construct And Measurement, Paul M. Kellstedt, Suzanna Linn, A. Lee Hannah

Political Science Faculty Publications

Given the scholarly and popular prominence of the concept of consumer confidence, it is striking that there are no examinations of the quality of the most commonly used measure of the concept—the University of Michigan’s Index of Consumer Sentiment (ICS). In this study, we assess the usefulness of consumer sentiment as a construct and a measure (or measures). We also identify the best way to consider its role in consumer behavior. This brings us to a consideration of fundamental questions about the reliability and validity of consumer sentiment measures. Our purpose is to provide evidence on this score. Our analyses …