Consumer sentiment toward technology spending reached its highest level since December of 2012, according to the latest figures released today by the Consumer Electronics Association (CEA), Arlington VA.
The CEA Index of Consumer Technology Expectations (ICTE), which measures consumer expectations about technology spending, increased by 4.1 points in July to reach 95.3, its highest level since the 2012 holiday season and peak for that year. And the CEA Index of Consumer Expectations (ICE), which measures consumer expectations about the broader economy, increased by 0.6 points from last month to reach 171.3 in July, the highest level so far in 2014.
“As CEA’s sentiment indexes have continued to show, consumer confidence is improving steadily following a weak first quarter,” said Shawn DuBravac, CEA’s chief economist and senior director of research. “The improved sentiment is helping establish a solid foundation for stronger tech spending – especially with the growth of emerging technologies like wearables and Ultra HDTV – to materialize in the back half of 2014.”
Last week, CEA released its report U.S. Consumer Electronics Sales and Forecasts 2010-2015, projecting that revenues from emerging product categories will grow by 242 percent year-over-year in 2014. CEA’s consensus, which covers more than 100 CE products serving as a benchmark for the consumer electronics (CE) industry, also predicts revenues for the entire industry are projected to reach a record high of $211.3 billion, driven in part by the skyrocketing sales of connected devices.
“The overall economic landscape is clearly improving,” said DuBravac. “CEA’s sentiment is consistent with other economic data series coming in, showing the economy is firming and momentum is rolling forward.”