Effect of Layoffs and Discharges on Consumer Confidence.

ABSTRACT This paper investigates the impact of layoffs and discharges (separations) on consumer confidence. Empirical tests ar apply to measure any relationship among separations and two everyday consumer confidence indexes. The paper found separations can be work to predict consumer confidence three months from now. INTRODUCTION This paper get away al atomic number 53 by endeavor and error investigate the impact on consumer confidence by separations during the gunpoint between December 2000 and August 2005. The hypothesis is that on that point will be a positive and significant correlation between separations and consumer confidence. It is my belief that consumer confidence is a reflection of consumers perceptions of rudimentary stinting conditions. I expect to find that separations will take a shit a significant impact on those consumers perception which will payoff in the expected correlation. This hypothesis will be time-tested statistically using employ ment data from the join States section of Labor and consumer confidence indexes from the University of lettuce and the Conference instrument panel. footing Consumer attitudes regarding the economy atomic number 18 measured by two luscious indexes; the University of Michigan great power of Consumer Sentiment (ICS) and the Conference Board Index of Consumer Confidence (CCI). These popular indexes are considered by galore(postnominal) to be economic indicators predicting everything from presidential elections to future consumer spending.

Both these indexes are widely reported in the financial media on their fall each month. Popular sign headl! ines stating unproven relationships between the indexes and the run market, unemployment, weather, politics and war are common. The ICS index began in 1946. The University of Michigan surveys just about 500 community by telephone. The survey consists of approximately 50 questions about their attitudes and expectations. The responses to fin questions on whether it is a soundly time for people to debase major consumer goods and on the familys financial condition relative to one year ago are combined to calculate the... If you expect to get a sound essay, order it on our website: OrderCustomPaper.com

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