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First, we re\u2010examine existing empirical models of consumption and consumer confidence, not only at the quarterly frequency, but using monthly data as well. Second, we employ real\u2010time data in addition to commonly used revised vintages. Third, we investigate the role of consumer confidence in a rich information context. We produce forecasts of consumption expenditures with and without consumer confidence measures using a dynamic factor model and a large, real\u2010time, jagged\u2010edge dataset. In a robust way, we establish the important role of confidence surveys in improving the accuracy of consumption forecasts, manifesting primarily through the services component. During the recession of 2007\u20132009, sentiment is found to have a more pervasive effect on all components of aggregate consumption: durables, non\u2010durables and services. Copyright \u00a9 2015 John Wiley &amp; Sons, Ltd.<\/jats:p>","DOI":"10.1002\/jae.2494","type":"journal-article","created":{"date-parts":[[2015,11,27]],"date-time":"2015-11-27T05:44:52Z","timestamp":1448603092000},"page":"1254-1275","source":"Crossref","is-referenced-by-count":69,"title":["Forecasting Consumption: the Role of Consumer Confidence in Real Time with many Predictors"],"prefix":"10.1002","volume":"31","author":[{"given":"Kajal","family":"Lahiri","sequence":"first","affiliation":[{"name":"Department of Economics University at Albany  SUNY NY USA"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"George","family":"Monokroussos","sequence":"additional","affiliation":[{"name":"European Commission Joint Research Centre  Ispra Italy"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Yongchen","family":"Zhao","sequence":"additional","affiliation":[{"name":"Department of Economics Towson University  Towson MD USA"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"311","published-online":{"date-parts":[[2015,11,27]]},"reference":[{"key":"e_1_2_6_2_1","doi-asserted-by":"crossref","DOI":"10.2307\/j.ctv36mk90z","volume-title":"Animal Spirits, 2013","author":"Akerlof GA","year":"2010"},{"key":"e_1_2_6_3_1","doi-asserted-by":"publisher","DOI":"10.1016\/B978-0-444-53683-9.00004-9"},{"key":"e_1_2_6_4_1","doi-asserted-by":"publisher","DOI":"10.1016\/S1574-8715(07)00204-7"},{"key":"e_1_2_6_5_1","doi-asserted-by":"publisher","DOI":"10.1257\/aer.102.4.1343"},{"key":"e_1_2_6_6_1","volume-title":"Does consumer confidence forecast household expenditure? 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