There is no doubt that consumer spending is the most vital component of any economy. Why? Depending on the economy's sheer breadth, consumer spending can range anywhere from 50-75% of GDP. In the U.S. and most highly industrialized nations, this percentage is about 65% of total spending. The first part of measuring total consumption is measuring consumer sentiment, which is derived completely from a consumer's standpoint.
In conclusion the consumption is ultimately the stimulant behind almost every fundamental aspect of the worldwide economy. In sophisticated economies, the impact of consumption may be less than in emerging economies that are largely import-export driven, but the consumption magnitude is even more pronounced due to both a greater wealth effect and standard of living that enable individuals to spend more freely with disposable income.
The data for analyzing overall consumption contains many underlying factors. …
