44 Copyright © 2015, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 3 DOI: 10.4018/978-1-4666-8274-0.ch003 Consumer Sentiment and Confdence during Post-Crisis 2008: A Panel Data Analysis ABSTRACT This chapter attempts to fnd out the impact of recent recession on the consumption pattern through consumer confdence index (CCI) of selected developed and developing economies. This chapter exam- ines how the macroeconomic variables like growth rate, infation, unemployment rate and debt-GDP ratio etc. infuence the consumer’s confdence during 1996-2012, in which the crisis occurred in 2008. Moreover, in this chapter we have explained the role of consumptions sentiment in terms of consumer confdence regarding future expectation. Apart from that, from the panel data set of 11 countries, we have found that more or less all the economies including the United States have experienced downward movement of consumer’s confdence in the presence of the great recession of 2008-2009. INTRODUCTION Several authors have rightly pointed out that though economic recession is a part of a business cycle but it make itself an evil of own family. Historically it has been evidenced that economic activities like consumption pattern of households and investment confidence of the producers of an economy have been distorted due to a major economic slowdown. If we start with the great recession of 1930s as our base instance, we have found that such a recession marked the most severe and persistent decline in aggregate consumption during this period 1 . In this context the second-worst collapse has been observed in the 1974-5 recession and it sustained for just one year. In contrast to the previous recessions the most current reces- sion 2008-9 has been experienced most severe Tonmoy Chatterjee Sidho-Kanho-Birsha University, India Soumyananda Dinda Sidho-Kanho-Birsha University, India