THE SOCIOTROPIC ASPECT OF CONSUMER CONFIDENCE

The unidimensionality of consumer confidence, a U.S. leading indicator , is investigated in the European Economic Community (EEC). The presen t findings confirm American and European evidence that the confidence indicators now in use are not unidimensional. They also point to a str ong 'sociotropic' component of consumer confidence in each of the four largest nations of the EEC. The present results are provided by model -based survey measures which, unlike the status quo indicators, can be quality checked.