Americans appear to be in a historic economic funk, according to one of the country’s most long-running surveys, raising the question of whether the country has actually lost its financial mojo or if the measuring stick itself has gone a little sideways.
Here are Five Fast Facts on the latest consumer sentiment survey:
- 😁😡 Old Timer - The University of Michigan Consumer Sentiment Survey was created back in the late 1940s to track how optimistic or pessimistic Americans feel about their personal finances and the broader business climate. It's basically a national mood ring.
- 🤔 Math Ain't Mathin' - The consumer sentiment index hovered around 70 in late 2023, reflecting a national mood that remains surprisingly cranky despite low unemployment and a decent overall job market.
- 📈📉 Peaks And Valleys - Looking at recent history, the index hit a cheerful pre-pandemic peak of 101 in early 2020 before crashing to 50 in June 2022 when inflation raged at over 9%. That was an all-time historic low...until this May, which dug through the basement floor to 44.8.
- 🖐️ But, Wait… - Skeptical economists argue the survey is broken because it shifted its methodology from traditional phone calls to online web surveys, meaning different (and extra cranky) folks were responding. Some also say it's been tainted by politics.
- 🤷 Not So Fast - Survey defenders disagree that the polling is flawed, saying consumers are genuinely miserable because cumulative inflation and high interest rates continue to hammer daily household budgets. Even if they used the same method as before, it would still be a new low, so it's potato-potahto.
🔥Bottom line: Whether the survey has a glitch or is correctly capturing the national financial headache, measuring the national mood is a tricky thing. Maybe the survey is perfectly fine and consumers are just over the exorbitant prices for groceries (and everything else), or maybe the changes actually do attract more people who enjoy complaining into the digital void. Either way, it's an inexact science at best, and we think it's safe to say everyone would feel better if prices cooled down. No one needs America's economic mood ring to be stuck on a very gloomy shade of blue.
How do you feel about the economy?
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