Write For Us

Why Many Americans Still Feel Bad About The Economy Despite Strong Data

Sponsored Post Vitamin D2 Canada Persia
39 Views

  • Thanks! Share it with your friends!

    You disliked this video. Thanks for the feedback!

ava
Published
Take a moment to consider your financial situation: Are you better or worse off financially than you were a year ago? Do you think you'll be better off a year from now? And where do you see the country headed in the next five years?

These are the kinds of questions used by the University of Michigan to calculate the Consumer Sentiment Index, an economic indicator measuring how people feel about the economy.

"It's a measure that we can compare over time and get a pulse on the attitudes of consumers," said Joanne Hsu, director of the Surveys of Consumers at the University of Michigan. "Which is important given that consumer spending is over two-thirds of GDP."

That survey and others show there is a pervasive sense of disconnect between the overall economic picture and how people feel about the economy. Despite slowing inflation, a healthy labor market with record-low unemployment, and stocks that remain in a bull market, consumer sentiment remains below pre-pandemic levels.

"People don't tend to think in terms of inflation—economists do," said Paul Donovan, chief economist at UBS Global Wealth Management. "But economists are not normal. Normal people think in terms of price levels."

Watch the video above to find out why consumer sentiment hasn't matched up with the economic reality, the factors behind the disconnect, and why the issue could play an outsized role in this year's U.S. presidential election.

Chapters:
0:00 Introduction
1:34 How the consumer sentiment index works
3:42 Highly visible prices
5:54 Misconception & partisanship
8:55 What’s next?

Produced by: Jeff Huang
Edited by: Tim Hurt
Graphics by: Christina Locopo, Jason Reginato
Narrated by: Jordan Smith
Supervising Producer: Jeff Morganteen
Additional Footage: Getty Images

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Want to make extra money outside of your day job? Take CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams. Register today: https://cnb.cx/3Iwblnk

Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC on Threads: https://cnb.cx/threads
Follow CNBC News on X: https://cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC

#CNBC

Why Many Americans Still Feel Bad About The Economy Despite Strong Data
Category
Tech
Tags
Consumer, sentiment, consumer sentiment
Sign in or sign up to post comments.
Be the first to comment