Does the sun influence consumer sentiment? This research investigates whether consumer confidence is affected by seasonal daylight fluctuations. Cross-country panel regressions are used with two different datasets. The analysis reveals that both solar elevation and sunlight duration positively impact consumer confidence. The findings remain consistent even after accounting for country and year-by-month fixed effects and controls for the business cycle, helping rule out alternative explanations. A one standard deviation increase in solar elevation or sunlight duration is associated with a measurable increase in consumer confidence. This study provides empirical evidence for the influence of seasonal daylight on economic sentiment. The findings have implications for understanding consumer behavior and its relationship with environmental factors, potentially informing economic forecasting and policy decisions by highlighting an often overlooked influence on economic confidence.
This study is a good fit for Bulletin of Economic Research due to its focus on identifying factors affecting economic trends. Consumer confidence is vital to economic performance. The research contributes to the journal's body of knowledge about the driving factors of consumer and market behavior in a global context.