How consumer confidence affects the market?

Consumer confidence is one of economic indicators. It measures the optimism of the consumers to the economy. Housing market depends on the consumer confidence. When economy expands, typically consumer confidence increases. Will consumer confidence performs well to the market?

According to RP Data research Director Tim Lawless, “A drop in consumer confidence could put a dampener on the housing market, which had shown strong improvements since the start of the year.”For the previous month, consumer confidence had fallen and purchases decrease. The market is slightly pessimistic because of the unemployment. When consumer confidence is high, consumers will purchase/invest more houses that lead to have an optimistic market.

http://www.perthnow.com.au/realestate/lower-consumer-confidence-could-put-a-dampener-on-the-market/story-fnhlgp12-1226858156877