Americans Concerned About Economy

Consumer sentiment in the United States has fallen to its lowest level in eight months, as reported by the Consumer Sentiment Index from the University of Michigan. Despite the economy not officially being in a recession, a survey conducted by Affirm revealed that approximately 60% of Americans perceive the country as being in one. Additionally, a Gallup poll indicated that one-third of respondents identified economic issues as the most pressing problem facing the nation. Joanne W. Hsu, director of the Surveys of Consumers at the University of Michigan, emphasized that economic concerns are at the forefront of people's minds. She noted the paradox of strong economic indicators existing alongside widespread feelings of financial insecurity among consumers. This sentiment is particularly pronounced given the backdrop of the highest inflation rates in 40 years, which peaked at 9.1% in June 2022 under the Biden administration. Although inflation has been declining, it has significantly impacted American purchasing power. A report from the Heritage Foundation in May 2024 estimated that the average inflation-adjusted weekly paycheck has decreased by about 4.4%, or $50, during President Biden's tenure. This decline occurred despite wage growth outpacing that of former President Donald Trump’s administration, according to Bankrate's analysis. Mark Hamrick, a senior economic analyst at Bankrate, remarked on the erosion of buying power, suggesting that what once seemed essential is now perceived as a luxury. This shift in consumer perception contributes to a growing sentiment that the economy feels "recession-like" for many Americans.