A novel approach to measuring consumer confidence

A new data collection method is put forward to measure daily consumer confidence at the individual level. The data thus obtained allow to statistically analyze the dynamic correlation of such a consumer confidence indicator and to draw inference on transition rates. The latter is not possible for currently available monthly data collected by statistical agencies on the basis of repeated cross-sections. In an application to measuring Dutch consumer confidence, results show that the incremental information content in the novel indicator helps to better forecast consumption.