Americans are feeling optimistic about the economy again, with some exceptions
American consumers haven't felt this good about the direction of the economy in years.
American consumers haven't felt this good about the direction of the economy in years.
That may signal the end of what some had come to call a "vibes-cession," where, despite decades-low unemployment and falling inflation, something still felt a bit off about the economy.
First, the monthly University of Michigan survey of U.S. consumers’ sentiment jumped 13% in January to reach its highest level since July 2021 — with the cumulative two-month gain of 29% figuring as the largest-consecutive increase since 1991, when a recession was ending.
And the New York Federal Reserve's survey of consumer finances for December, published earlier this month, showed that perceptions of households’ current financial situations improved, with fewer respondents reporting being worse off than a year ago.
Views on the state of the economy remain deeply polarized based on political party. While Democrats scored their current economic conditions at 106.5 in the University of Michigan survey — which was among the highest ratings recorded — Republicans gave it a score of 61.9; independents came in at 77.2.
Rating: 5