Consumer confidence in the broad economy may have improved ahead of the holidays, but the Consumer Electronics Show in Las Vegas in January has a good tailwind offering the expectation of a boost in 2012 ahead of the key January show… consumer confidence regarding technology spending rose to a yearly high in December.
The Consumer Electronics Association’s Index of Consumer Technology Expectations report may be the highest level of the year, but this was actually the second highest level ever reported this month at 93.6 and at a time when many component companies were issuing earnings warnings. This report is up over 2 full points from last month and now “nearly even with this time last year, when the ICTE reached a record-high of 93.7.”
As far as the outlook: “Looking ahead to 2012, consumer tech remains well positioned compared to all other durable good categories… Confidence in the economy also increased this month after reaching an all-time low in November.” Perhaps it goes without saying, but this is obviously a volatile and headline-sensitive report.
The outlook is on the up and up as well with the Consumer Expectations component rising by more than 14 points to 170.7 this month. As noted, “The ICE, which measures consumer expectations about the broader economy, is at its highest point since February but remains down four points from this time last year…. While the economic landscape will remain rocky for 2012, December’s numbers show signs of hope as we head into the New Year.”
The full news feed for the Consumer Electronics Show is here.
JON C. OGG
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