• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Americans are starting to feel better about the economy and inflation
Editor's Pick

Americans are starting to feel better about the economy and inflation

by December 9, 2023
by December 9, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Much has been made about how Americans feel bad about the state of the economy, even though according to many broad-based statistical measures things are pretty good.

It looks like that message has sunk in to some extent, as a widely followed reading of consumer opinion jumped in December and ended a four-month streak of declines.

The University of Michigan said Friday that its consumer sentiment index jumped 13% to 69.4, as people became less worried about inflation and more optimistic about a number of issues. That not only ended the downturn but reversed the decline, returning the sentiment index to where it was in August.

Quincy Krosby, chief global strategist for LPL Financial, wrote that the reading shows ‘a more optimistic view of economic conditions, which suggests that coupled with a stronger than expected payroll report, helps underpin the narrative of a still resilient economy.’

The report was a surprise to experts as well. Economists surveyed by Dow Jones Newswires and The Wall Street Journal thought sentiment would inch higher to 62.4 from November’s reading of 61.3, but the metric jumped instead.

‘There was a broad consensus of improved sentiment across age, income, education, geography, and political identification,’ said Surveys of Consumers Director Joanne Hsu. Year-ahead inflation expectations plunged from 4.5% last month to 3.1% this month. The current reading is the lowest since March 2021.”

Consumers generally haven’t felt great about the economy. They’ve been concerned about the possibility of a recession, which experts discussed a great deal in 2022 and 2023 even as the economy held up, and they’re feeling the continued effects of the inflation of the last few years along with other factors like rising credit card debt and the high cost of housing.

Inflation has been slowing for months and the job market has stayed strong, with wages for workers rising. And spending by consumers has stayed strong, which is a major reason there hasn’t been a recession. It’s possible that some of that sunk in this month.

The sentiment index is calculated based on surveys of Americans with questions about their current views on categories like inflation, personal finances and business conditions, as well as their expectations of how those things will change. Because consumer spending accounts for about 70% of the U.S. economy, the sentiment index is considered an important indicator of how much they are willing to spend and what the trajectory of the economy might be.

The recent dip in consumer sentiment was, among other things, a possible warning sign about holiday spending this year.

For comparison, the consumer sentiment index stood at 99.3 in December 2019, before the Covid-19 pandemic took hold. It hit an all-time low of 50.0 in June 2022, when inflation was at a 40-year high.

The index’s all-time high was 112.0 in February 2000, at the height of the dot-com bubble of that era.

Hsu’s statement added that many respondents mentioned they felt better about the economy because they’re optimistic about elections in 2024.

In recent years, consumer sentiment has been split along partisan lines: when a Democratic president is in office, Democrats feel much better about the economy than Republicans do, and vice versa. So it’s possible that many of the people surveyed were optimistic about the elections even though they’re hoping for opposite outcomes.

This post appeared first on NBC NEWS
You Might Also Like
  • Rare Michael Jordan, Kobe Bryant rookie jerseys expected to sell for $20 million at auction
  • June home sales slump as median sales price rises to $426,900
  • Netflix ad-supported tier has 40 million monthly users, nearly double previous count
  • In rare move, Ford executive chair calls on UAW to make a deal and end ‘acrimonious’ talks
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Here’s Why Growth Stocks Outperformed Last Week!
next post
Will the S&P 500 Push Above 4600 Before Year-End?

You may also like

How Trump could spare Biden’s renewable energy credits and still...

December 20, 2024

Spanish retailer Mango to open 60 new U.S. stores as...

November 26, 2024

Starbucks announces several changes, including plans to cut some menu...

January 30, 2025

Three-year inflation outlook hits record low in New York Fed...

August 13, 2024

Bud Light sales plunged after boycott over campaign with transgender...

August 4, 2023

Netflix ad-supported tier has 40 million monthly users, nearly double...

May 17, 2024

Some Juul users are receiving thousands of dollars as part...

October 22, 2024

Collapsed crypto exchange Mt. Gox is about to unload $9...

July 3, 2024

Applebee’s owner plots turnaround to lure back fast-food customers and...

May 10, 2024

Average credit card balances jump 10% to a record $6,360...

February 9, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025
    • E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode in up to $1 billion deal

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,764 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,450 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,429 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,307 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    More than half a million portable...

    June 24, 2024

    Boeing withdraws contract offer after talks...

    October 10, 2024

    Caroline Ellison, former FTX exec, sentenced...

    September 25, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here