Study: Consumer Confidence Changes Quickly

The latest Consumer Expectation Index by Experian found that confidence from a consumer's perspective has jumped around dramatically during the first part of 2011.

Currently, the index figure is 90.5, which was based off of information from the first week of May. But this only explains that confidence has waned due to a multitude of situations. In January, the index was at its highest in three years, with a figure of 96.8. In February, the index fell to a lower level than it was during the holiday season.

"At the beginning of 2011, the economic outlook was very positive among consumers. However, rising gas prices and conflicting economic news have led to extreme fluctuations in consumers' economic outlook," said Bill Tancer, general manager of research for Experian Marketing Services. "While economic expectation settles back to the steady state of the low 90s that we observed in 2010, consumers' overall view of the economy has returned to one of cautious optimism."

Consumers may want to take this information with a grain of salt, as it could mean that many are overreacting. Despite this, it is important in an uncertain economy to keep credit card debt under control, as job losses are already increasing.