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Consumer Sentiment Drops in September, Shows CTA Indexes

Arlington, VA – September 27, 2016 – 

Consumer confidence toward tech spending and the overall economy decreased in September, according to the Consumer Technology Association (CTA)™ Indexes.
Technology Spending
The CTA Index of Consumer Technology Expectations (ICTE), which measures consumer expectations about technology spending, decreased by 0.5 points in September to 85.8.
“Consumer sentiment on tech spending remains in-line with last month and last year,” said Shawn DuBravac, Ph.D., chief economist, CTA. “While we saw a slew of new product launches earlier this month, we still remain nearly two months outside of the core holiday shopping season and the impending presidential elections are likely dominating consumer attention right now.”
Looking ahead at the 2016 holiday season, CTA projects tech spending to increase 3.1 percent over last year – driven mostly by increases in online and mobile spending. A key holiday theme is the popularity of emerging tech such as virtual reality, wearables and smart home devices making its way into the holiday gift mix, as well as strong interest in audio categories such as headphones and wireless speakers.
Overall Economy
The CTA Index of Consumer Expectations (ICE), which measures consumer sentiment about the U.S. economy as a whole, decreased by 4.4 points in September to reach 171.9.

“Decline in economic sentiment is primarily driven by lower expectations about the broader economy,” said DuBravac. “The economy has seen meager growth - up only one percent through the first half of the year – which has put general downward pressure on wage growth and consumer sentiment.”
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, charts and methodology on the CTA Indexes page.