Consumer Confidence Falls, According to Latest CEA-CNET Indexes

Business Wire, Oct 28, 2008

Consumer Confidence in Consumer Electronics Also Declines

ARLINGTON, Va. -- Consumer confidence in the economy decreased in the month of October, according to figures released today by the Consumer Electronics Association (CEA)[R] and CNET (www.CNET.com). The CEA-CNET Indexes also found that consumer confidence in consumer electronics (CE) and technology are down.

The CEA-CNET Index of Consumer Expectations (ICE), which measures consumers' confidence in the overall economy, dipped to 163.7 in October. That number is down more than eight points from last month and more than seven points from this time last year. October's number ends two straight months of positive growth.

"As consumers continue to see the stock market struggle and their 401k's shrink, it should come as little surprise that consumer confidence in the economy is down," said Claudia Haase, director of research at CNET. "Even as expectations for the job market and personal financial health both hit all-time lows, consumers remain somewhat optimistic about the future, believing the economy will be better off in the next 12 months than it is today."

Confidence in CE and technology is also lower this month. The CEA-CNET Index of Consumer Technology Expectations (ICTE) fell to 76.2, marking the third consecutive month of negative growth. The ICTE is eleven points lower than this time last year and is at the second lowest level since CEA and CNET began tracking index data in January 2007. The all-time low of 75.2 was set in May of this year.

"While hoping for better news entering the fourth quarter and the holiday shopping season, it is important to remember that consumer electronics remain one of the most desired products on holiday wish lists," said Haase. "While consumers will reign back spending this year, according to CEA's Annual CE Holiday Purchase Patterns Study, they'll cut back in other areas before consumer electronics."

The 15(th) Annual CE Holiday Purchase Patterns Study, released last week by CEA, shows that consumers will spend 28 percent of their holiday budgets on CE products and services. Peace and happiness rank number one on adults overall holiday wish list with computers coming in second. Televisions, video game systems and cell phones also rank in the top 10.

The ICE and ICTE comprise the CEA-CNET Indexes, which are 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.

UPCOMING EVENTS

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Digital Hollywood
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CES New York Press Preview featuring CES Unveiled@NY
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CES Unveiled: The Official Press Event of the International CES
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January 6, 2009, Las Vegas, NV
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February 27, 2009, New York, NY
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October 18-21, 2009, Phoenix, AZ
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CES New York Press Preview featuring CES Unveiled @ NY
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