How does consumer confidence typically affect economic changes in a country?

Consumer confidence is important because it reflects how people feel about the economy and their own financial situations. When consumer confidence is high, people are more likely to spend money on goods and services, which can boost businesses and lead to economic growth. For example, if many people feel secure in their jobs, they might buy new cars or take vacations, which helps companies grow and hire more workers. On the other hand, if consumer confidence is low, people may save their money instead of spending it, which can slow down the economy and lead to job losses. Overall, consumer confidence can create a cycle that either helps the economy grow or causes it to shrink.