Consumer Confidence Falls in April, According to Latest CEA-CNET Indexes

ARLINGTON, Va.--(BUSINESS WIRE)--Consumer confidence in the overall economy decreased in April, according to figures released today by the Consumer Electronics Association (CEA)® and CNET (www.CNET.com). Although there was a slight decrease in consumer expectations about the future, the CEA-CNET Indexes painted a different picture for technology spending expectations, which reached their highest level this year.

“While we’re seeing indications of overall consumer confidence stabilizing, this month’s decline is still well above the all-time low seen last summer. Consumers continue to be cautious and reactive.”

The CEA-CNET Index of Consumer Expectations (ICE), which measures consumers’ confidence in the overall economy, dipped to 168.5 in April, but was up nearly three points over April 2008. The number is down four points from last month and moderates the upward trend persistent since February.

“Consumers continue to worry about economic uncertainty,” said Anne Claudio, Vice President of Research at CBS Interactive. “While we’re seeing indications of overall consumer confidence stabilizing, this month’s decline is still well above the all-time low seen last summer. Consumers continue to be cautious and reactive.”

While overall consumer confidence dipped in April, confidence in technology and consumer electronics (CE) climbed significantly. The CEA-CNET Index of Consumer Technology Expectations (ICTE) rose to 77.4, an increase of more than 10 points from last month and its highest level since December of 2008. The ICTE is up on a year-over-year basis for the first time since last September.

“While tax season may have caused some consumers to be more careful with their personal finances, they are still looking to spend disposable income on technology and CE,” said Claudio. “The ICTE showed that consumers are more likely this month to buy consumer electronics and spend more on those products than last month. We are hoping the increase in the CE confidence index will result in positive returns for manufacturers.”

The CEA-CNET Indexes are comprised of the ICE and the ICTE, both of 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 $172 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.

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