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Weekly Economic Letter

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U.S. and Canadian Consumer Confidence Indexes: How to compare the two

Mon, May 25 2009, 11:25 GMT
by Economic and Strategy Team

National Bank of Canada


Summary

  • The Consumer Confidence Index published by the Conference Board of Canada is not comparable to the one issued by its counterpart in the United States. The main difference between the two lies in how the underlying diffusion indexes are constructed.

  • This problem can be overcome by applying a standard method of construction for both countries.

  • If the underlying surveys differ, whether because the questions asked are not the same, the surveys are not conducted at the same time of the month, or the sampling methods vary, then the two confidence indexes cannot be considered to be perfectly comparable. Still, comparability can be improved immensely if the method of constructing the indexes is standardized.

Published on  Mon, May 25 2009, 11:27 GMT


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Legal disclaimer and risk disclosure

This presentation may contain certain forward-looking statements about the 2009 Economic and Financial Outlook. Such statements are subject to risk and uncertainties. Actual results may differ materially due to a variety of factors, including legislative or regulatory developments, competition, technological change and economic conditions in Canada, North America or internationally. These and other factors should be considered carefully and readers should not rely unduly on National Bank of Canada’s forward-looking statements. This presentation may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express consent of National Bank.

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