Consumer confidence in technology reached its highest level of the year in November as confidence in the economy sunk to an all-time low, according to Consumer Electronics Association (CEA).
"Tech continues to grow and remains well above year-over-year levels on the heels of the strongest monthly gains for electronics and appliance retail sales since November 2009," said Shawn DuBravac, CEA's chief economist and director of research. "Strong retail sales in October, coupled with growing consumer intentions to purchase innovative new technologies, is well timed as we move fully into the holiday shopping season this week."
Consumer sentiment around technology increased nearly two points this month. The CEA Index of Consumer Technology Expectations (ICTE) rose to 91.2, its highest level since December 2010. The ICTE, which measures consumer expectations for technology spending, is also up nearly 12 points from this time last year.
While consumer confidence in technology is at its highest point in 11 months, consumer confidence in the overall economy dropped to an all-time low. The CEA Index of Consumer Expectations (ICE) fell to 156.6 in November, down three points from last month and the lowest level since the CEA Index began in 2007. The ICE, which measures consumer expectations about the broader economy, is down more than 10 points from this time last year.
"The Super Committee's inability to come to a debt reduction compromise in Washington is clearly impacting sentiment across the country," said DuBravac. "Consumers remain uncertain about the near term and long term viability of the U.S. economy."
The CEA Indexes comprise the ICE and ICTE, both of which are updated on a monthly basis through consumer surveys. New data is released on the fourth Tuesday of each month. CEA has been tracking index data since January 2007.