Why Many Americans Still Feel Bad About The Economy Despite Strong Data

CNBC
CNBC
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Publicado 2024-05-03
Take a moment to consider your financial situation: Are you better or worse off financially than you were a year ago? Do you think you'll be better off a year from now? And where do you see the country headed in the next five years?

These are the kinds of questions used by the University of Michigan to calculate the Consumer Sentiment Index, an economic indicator measuring how people feel about the economy.

"It's a measure that we can compare over time and get a pulse on the attitudes of consumers," said Joanne Hsu, director of the Surveys of Consumers at the University of Michigan. "Which is important given that consumer spending is over two-thirds of GDP."

That survey and others show there is a pervasive sense of disconnect between the overall economic picture and how people feel about the economy. Despite slowing inflation, a healthy labor market with record-low unemployment, and stocks that remain in a bull market, consumer sentiment remains below pre-pandemic levels.

"People don't tend to think in terms of inflation—economists do," said Paul Donovan, chief economist at UBS Global Wealth Management. "But economists are not normal. Normal people think in terms of price levels."

Watch the video above to find out why consumer sentiment hasn't matched up with the economic reality, the factors behind the disconnect, and why the issue could play an outsized role in this year's U.S. presidential election.

Chapters:
0:00 Introduction
1:34 How the consumer sentiment index works
3:42 Highly visible prices
5:54 Misconception & partisanship
8:55 What’s next?

Produced by: Jeff Huang
Edited by: Tim Hurt
Graphics by: Christina Locopo, Jason Reginato
Narrated by: Jordan Smith
Supervising Producer: Jeff Morganteen
Additional Footage: Getty Images

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Why Many Americans Still Feel Bad About The Economy Despite Strong Data
Todos los comentarios (21)
  • @abualbraa
    Bro said a TV price got lower. Like I'm buying a TV every day smh
  • @daniella0124
    Not CNBC is trying to gaslight us saying "everything is fine with prices" 😂
  • @HodgeChris
    The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?
  • @BreakingDawn1980
    An entire video of "prices are up. People don't like it. But the rich are doing fine. So you poors will get used to it." Talk about tone def.
  • @clintscott3300
    Someone said that it's time to be concerned when you start to see individuals shoplifting groceries rather than big-screen televisions, and i agree. Truth is, inflation will never reach 2% ever again, maybe in the next life, but not this one.  Anyone purchasing groceries and gasoline is aware that real inflation is much over 10%; they simply lie about it like cheap blankets. In reality, interest rates would be in the 20s because of how high inflation is. But then despite the severe bear market, I am aware of certain investors that continue to earn over $100,000. Wish I could accomplish that.
  • @newjonwayne
    The snickers bar being more expensive gives off the “illusion” of inflations. Dude it’s more expensive. That’s inflation.
  • @borut3005
    Eat TV if you cannot afford bread.
  • @lsheets1
    In the mind of an economists: * Then: Wages up 2%, Prices up 10% * Now: Wages up 0%, Prices up 5% See, everything is better! Prices aren't up as much.
  • @drew9367
    Did CNBC just call me stupid because I don't buy 'durable goods' every day?
  • @ejgaming6596
    It’s not about psychology. It’s about seeing our paychecks disappear when we used to have leftover money for spending.
  • @desperado914
    The dude is right, I am going to buy tv everyday, who needs food.
  • @addim2717
    Do these people even hear themselves?
  • @Chopsuey087
    I don't care about unemployment levels. The price of everything is outrageous and needs to be lowered across every industry.
  • @viveksharma9499
    Because the data can be manipulated........ The price of gas and milk at grocery store cannot
  • @jmesa951
    Hey guys, TV prices are falling, so don't worry about the cost of living rising 😊
  • @Andrew_28
    Oh, I understand now. I’m just too stupid to realize how great everything is. My bad.
  • @bibby3027
    “don’t worry guys prices are only going up for the things you have to buy every day! 😀”
  • @adriennem1003
    The economy is horrible.....everyday folks know it.