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Consumer Tech Spending Sentiment Down Seasonally for August, says CTA

Arlington, VA – August 23, 2016 – 

Consumer confidence toward tech spending saw a small decline in August, while sentiment toward the overall economy increased, according to the monthly Consumer Technology Association (CTA)™ Indexes.

Technology Spending
The CTA Index of Consumer Technology Expectations (ICTE), which measures consumer expectations about technology spending, decreased 5.3 points in August to 86.3.
 
“Not uncommon for the end of the summer season, consumer sentiment toward tech spending saw a small seasonal dip in August,” said Shawn DuBravac, Ph.D., chief economist, CTA. “I expect sentiment toward tech spending to move higher in the coming months, with a combination of major product launches and the holiday shopping season.”

Ahead of anticipated product launches, according to CTA forecasts, unit sales of smartphones are expected to reach 183 million in 2016 (up five percent year-to-year), while revenues will reach $55 billion (a four percent increase). As more virtual reality (VR) headsets come to market in 2016, CTA expects unit sales to increase by 296 percent over last year, reaching 800,000 units sold. And CTA projects digital assistant devices (voice-activated devices that provide a cloud-based artificial intelligence-powered virtual assistant, such as Amazon’s Echo) to reach 2.2 million units (up 32 percent).

It will also be a strong second half of the year for 4K Ultra High-Definition TVs, with shipments expected to reach 15 million units (a 105 percent increase), and revenue that will exceed $12.9 billion (a 69 percent increase).

Overall Economy
The CTA Index of Consumer Expectations (ICE), which measures consumer sentiment about the U.S. economy as a whole, increased by 4.3 points in August to reach 176.3.
 
“Despite a tepid first half of the year, some uncertainties appear to be waning, and equities moved higher over the duration of August,” said DuBravac. “Sentiment toward the overall economy naturally followed in tandem.”

The CTA Indexes are updated on a monthly basis through consumer surveys. New data is released on the fourth Tuesday of each month. Find current and past indexes on the CTA Indexes page.

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