Consumer confidence refers to the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. It is often measured through surveys that ask individuals about their expectations for future economic conditions, job security, and spending habits. High consumer confidence typically leads to increased spending, which can stimulate economic growth. When consumer confidence is low, people may be more cautious with their money, leading to reduced spending and potentially slowing down the economy. Factors influencing consumer confidence include economic indicators, employment rates, and political stability. Understanding consumer confidence helps businesses and policymakers make informed decisions.