Consumer Confidence in Technology Continues to Rise, According to Latest CEA-CNET Indexes

Business Wire, August 26, 2008

CEA-CNET Index of Consumer Expectations Also Up

ARLINGTON, Va. -- The CEA-CNET Indexes increased for the month of August, according to figures released today by the Consumer Electronics Association (CEA)[R] and CNET (www.CNET.com). The Indexes are comprised of the CEA-CNET Index of Consumer Expectations (ICE) and the CEA-CNET Index of Consumer Technology Expectations (ICTE), the first-ever measure of consumer expectations in technology and consumer electronics (CE).

Consumer confidence in technology continues to strengthen. The ICTE reached 84.4 in August, up nearly four points from 80.7 in July. It is the third consecutive month the index has risen and marks the highest level it has reached since February. It is also the first time since March the index has increased on a year-over-year basis. August results also show consumers are more inclined to purchase technology and plan to spend more on technology in the months ahead.

"While there remain significant risks to the downside in the broad economy, we are beginning to see subtle, positive shifts in consumer sentiment," said Shawn DuBravac, CEA's economist. "Consumer electronics remain a vital part of people's everyday life and an increasing appetite for technology is especially encouraging as we head into the fourth quarter and the holiday shopping season."

Overall consumer confidence in the economy is also improving. The ICE hit 165.5 in August, an uptick of more than three points from 162.2 in July and the highest it has been since March. However, the ICE remains nine points below the same time last year. While the outlook for the broad economy has changed little for individuals, August figures indicate consumers expect to be better off financially in the months ahead.

"The back-to-school period is crucial for many CE manufacturers and retailers, so it is an encouraging sign that consumer sentiment remained strong in August," said Claudia Haase, director of research at CNET. "The overall economy may be facing headwinds but consumers appear optimistic about the laptops, MP3 players and cell phones that have become indispensable for today's students."

The CEA-CNET Indexes will be updated on a monthly basis through consumer surveys. New data is released on the fourth Tuesday of each month. CEA and CNET have been tracking index data since January 2007. To find current and past indexes, charts, methodology and future release dates, log on to www.CEACNETindexes.org.

About CNET:

CNET (www.CNET.com), a property of CBS Interactive, is where people go to discover the latest in tech and consumer electronics. Driven by a trusted voice and a passionate community, CNET creates an open environment for people to find and use the best products to fit their lifestyle. The powerful combination of CNET's award-winning news, lab-tested product reviews, safe and spyware-free downloads, and user-generated content give people information and inspiration to live and thrive in a life gone digital.

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $173 billion U.S. consumer electronics industry. More than 2,200 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion and the fostering of business and strategic relationships. CEA also sponsors and manages the International CES - Where Entertainment, Technology and Business Converge. All profits from CES are reinvested into CEA's industry services. Find CEA online at www.CE.org.

Follow the 2009 International CES on Twitter at http://twitter.com/2009CES and visit the International CES Page on Facebook.

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