The CEA-CNET Index of Consumer Expectations (ICE) climbed five points to 174.1 in October. The ICE, which measures consumer expectations about the broader economy, is up 10.4 points from this time last year, and has climbed in three of the last six months.

“Consumers were met with positive news regarding economic recovery this month,” said Anne Claudio, vice president of research at CBS Interactive. “The stock market rallied to levels not reached in years while optimism is being expressed by economic leaders that the end of the recession is near.”

The CEA-CNET Index of Consumer Technology Expectations (ICTE) declined four points this month. The ICTE, which measures expectations for buying CE and spending more on CE products and services, is up 3.1 points from this time last year.

“With the holiday shopping season right around the corner, consumers are still being cautious towards spending,” said Claudio. “Continued good news on the economy will drive spending in many categories, including technology, as consumers look to enjoy the holidays.”

Marketwatch reports the key gauge of consumer expectations shot up in April almost 50% from where it was the prior month. That’s the fourth largest one month gain ever- and the biggest since Baghdad fell back in 2003. And that’s after the second lowest level ever in March.

What’s happening? The Marketwatch site believes it’s the “green shoots” theory suggesting that even though the economy remains weak, there are some signs of things turning around. They taught us at Wharton that consumer expectations are a huge contributor to the growth or contraction of the economy. If consumers expect things to get better, they start spending a little more, which improves the profits of the retailers and manufacturers, which leads to more jobs, which leads to more consumers, etc. etc.

Since the Fed is virtually out of tricks, foreign governnments don’t look too ready to help and it looks like Obama will have a tough time getting any more stimulus money, it’s up to us shoppers to start making a difference here. Just don’t tell my wife (just kidding honey)!

Despite the slight uptick in online spending, the outlook for offline retail sales remains bleak. This quarter’s Index shows a decline in consumer confidence as we approach the 100-day mark for the Obama administration. Consumer sentiment towards the economy in general and confidence in overall spending has decreased from last quarter. Thirty-nine percent of consumers reported having more confidence in the economy with the 100-day anniversary of the Obama administration approaching. This is down from 51 percent who expected to have more confidence once the new administration began. And when it comes to confidence in overall spending, 19 percent feel more comfortable increasing their everyday spending this quarter, a decline from 28 percent who expected to feel comfortable increasing spending during Q1.

“The slight uptick in online spending this quarter is further evidence that the online retail sector is better withstanding the economic conditions,” says Bruce Cundiff, Director of Payments Research and Consulting for Javelin Strategy & Research. “Overall, consumers are still spending more responsibly and with caution. As we approached inauguration day during Q1, confidence was strong and consumers were hopeful. The continued economic strain, increasing job loss, and consumer debt over the last 90 days has taken a toll on confidence this quarter.”

The Online Spending Index polled 1,200 consumers to measure projected online spending for the quarter and the influencing factors, including the economy, security, and financial control. This quarter’s Index also surveyed respondents about Mother’s Day spending to learn what type of holiday retailers can anticipate this year.

• Twenty percent of respondents plan to make their Mother’s Day purchases online this year.
• Nine percent of consumers anticipate spending more this year for Mother’s Day.