Consumers are Still Confident in Technology

Despite a recent plunge in overall consumer sentiment in the United States, confidence in the technology industry reached its highest level in history.

Earlier this month, the Thomson Reuters/University of Michigan’s preliminary index on consumer sentiment dropped to 74.5, its lowest reading since August and well below estimates. However, with the latest product offerings from companies such as Apple (NASDAQ:AAPL) and (NASDAQ:AMZN) being released in time for the holiday season, shoppers are still willing to part with their money for technology items.

The Consumer Electronics Association, which conducts market research by uniting 2,000 companies within the consumer technology industry, reports that its Index of Consumer Technology Expectations jumped 9.3 points to 97.3 in December. It is the highest reading for the index since tracking began in January 2007, and 3.7 points higher from the same period last year.

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“Technology products are the most wanted gifts this holiday season, and we’ve seen a tremendous amount of activity, with several new product launches over the past few months,” said Shawn DuBravac, CEA’s chief economist and senior director of research. “Consumers are increasingly dedicating a significant portion of their overall gift budgets to electronics, which has crowded out other categories for holiday gift spending.”

As the chart shows, it has been a good year for many well-known tech names…