The relationship between US consumer confidence and recessions, in one chart

Gunnar Rathbun / AP Images

• Consumer spending accounts for around 70% of the entire US economy.
• US consumer confidence rose to the highest level since late 2000 in February.
• Sharp downturns in consumer confidence have acted as a lead indicator for economic downturns in the past.

At around 70% of GDP, there is no more important part of the US economy than household spending.

It’s massive, meaning that what consumers think and do is always influential on how the overall US economy performs.

See the rest of the story at Business Insider

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