Americans’ Economic Sentiment Hits Postwar Low Amid High Prices
8 reported
A new analysis examines why Americans' economic outlook has reached historically low levels despite decent GDP and job growth. The University of Michigan's consumer sentiment survey recorded its lowest level ever last month, according to the source article. A CNN survey found that only 47 percent of respondents believe most people can get ahead if they work hard, down from 67 percent a decade ago. President Donald Trump's economic approval ratings hit new lows in recent weeks, with CNBC showing 39 percent and CNN showing 30 percent. The article reports that 76 percent of respondents in CNN's open-ended question cited affordability as the biggest economic problem facing their family. New data released Tuesday showed inflation at its highest level in three years, partly due to higher energy prices from the Iran war, and inflation outpacing wage growth for the first time in three years. Economists Jared Bernstein and Daniel Posthumus propose that Americans' expectations for stable prices over four decades have been shattered by 2020s inflation, creating a "vibe gap" that explains the disconnect between economic data and public sentiment.
What’s reported
University of Michigan consumer sentiment survey recorded its lowest level ever last month, according to the source.
CNN survey found 47 percent of respondents agreed most people can get ahead if they work hard, down from 67 percent in 2016.
President Trump's economic approval ratings hit new lows: 39 percent in CNBC poll and 30 percent in CNN poll.
76 percent of CNN survey respondents cited affordability as the biggest economic problem facing their family.
New data showed inflation at its highest level in three years, partly due to higher energy prices from the Iran war.
Inflation outpaced wage growth for the first time in three years, according to economist Heather Long.
Producer prices rose the most since 2022, which can be an early sign of future price increases for customers.
Economists Jared Bernstein and Daniel Posthumus published a theory this month attributing the "vibe gap" to changed expectations after four decades of stable prices.
Key figures
President Donald Trump
Heather Long, chief economist of Navy Federal Credit Union
Jared Bernstein, economist
Daniel Posthumus, economist
Sources: vox.com
