economy
'Vibepression': Why consumer sentiment is hitting record lows
Consumer sentiment is at record lows despite inflation being lower than a few years ago and unemployment being low. Economists and analysts are searching for answers as to why Americans view the economy so negatively at a time when it is performing relatively well.
TL;DR
- Consumer sentiment hit a record low in April, falling to 47.6, below Great Recession and COVID-19 lockdown levels.
- Despite low unemployment (4.3% in March) and moderating inflation (3.3% year-over-year), consumer sentiment is depressed.
- Prices are up significantly since January 2020, with used cars up nearly 29%, shelter costs up over 31%, steaks up 66%, and restaurant meals up over 35%.
- Experts like Mark Hamrick describe the phenomenon as 'vibepression,' suggesting factors beyond pure economic data are at play.
- The pandemic may have caused a lasting shift in sentiment, with declining trust in institutions and changing attitudes toward government cited as potential causes.
- Concerns about foreign policy (e.g., war with Iran affecting oil prices) and the potential job losses from AI may also be contributing factors.
- Increased use of algorithmic social media feeds may create a more polarized and emotionally triggering environment, leading to more negative news consumption about the economy.