CNBC
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
Mainstream Propagandists at it yet again. “What? You’re still paying more for literally everything? It must just be you because the University of Michigan said everything is colorful rainbows and unicorn farts….so vote for the old man again so we can get him to print more money for our pet projects and corporations “
Guys, it’s all an illusion in our heads.
Tvs are not as expensive? This video reminds me of someone urinating on the American consumers and claiming it is raining.
The gaslighting from the overlords nowadays is insane . No matter how many articles and videos they put out, I am keeping my money in my pocket.
lol the job market is a total joke, there’s plenty of minimum wage jobs out there or jobs that require a masters degree starting at $15/hr. Actual livable wage jobs are much harder to come by. Prices continue to grow while wages stay the same. I can easily say no to getting a new TV because “oh that’s too expensive I’ll just hold off on that purchase” same can’t be said about groceries.
The fake economic data presented to the public just to justify the Stock market keeps going up every week . Rich keeps getting richer . Why can’t the inflation calculation method based on just grocery , gas , insurance, utilities, hydro , stuff that general public is feeling the pinch . Economic data mostly fake just to prop up the stock market for the richest.
So Biden’s people told y’all to talk about cheap TV’s? Yeah I could buy a TV every week with what I pay for groceries. But here we are.
Yes, there’s plenty of jobs and plenty of work, wages are up. I’ll give them all that. But the problem is that for most people including me, my wages haven’t risen enough to keep up with the inflation. And even if inflation is going down, it doesnt mean things are getting cheaper, they just aren’t going up quite as much or as quickly as they were. But most people including me have a lot of catching up to do before we get back the same buying power that we used to have before Biden. It’s actually so bad that I cut back on as much stuff as I possibly could, and I still have to work a lot of overtime to keep up with all my bills and expenses. It didn’t used to be that way, prior to the pandemic, I could afford to live comfortably on 40 hours a week of work and I had more disposable income than I do now. If the economy takes a down turn and they cut my overtime, I don’t know what I will do. Yeah, theres plenty of work, but I gotta work a lot more to have less than I used to. Which really sucks because I don’t really wanna be spending so much time at work. I have a little girl thats 2 years old and she’s so cute and precious. I feel like im missing out on a lot by not spending enough time with her.
This feels like gaslighting. Of course inflation is not 9% like the 2022 peak but it builds on itself. Meanwhile most paychecks rise very slowly unless you get a solid promotion.
Because everyone is tired of Bidenomics. Ten percent for the big guy and five percent for Hunter’s nostrils.
Nosotros votamos por Trump! 45/47
Trying to brainwash us by saying all is good. “C’mon man” give us a break. Do you think we use a rental brain! Property taxes went up by 65% ish , Car insurance went up by 36% in last two years. Food ticket used to cost us $9 is now $17. And you guys are saying TV is F#$%^ cheapppp.
Unemployment in the film and tv industry here in California is 10%. Why is no one talking about this? This is a huge segment of the population and we are really struggling and the government is turning a blind eye. How come the banks get bailed out but not the creators of everyone’s precious entertainment? People watch our work every single day and then don’t want to pay us for our labor. It’s sickening. I’m a hard working professional and i want to work but no one is hiring. Everyone i know is unemployed.
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.
Very possible! Particularly in this weak market. There are several opportunities to generate excellent returns, but in unpredictable terrain as this volatility is a huge factor when in the playing field, the rally is a “frenemy”. Get an advisor
I totally agree, it’s been three years and counting, and I’ve made over 1.7 million by simply following a coach’s advice. I was on the sidelines for a while watching, trying to determine the best time to get in, before I came across a coach, recommended by my wife. I was reluctant at first but I went ahead and contacted the coach. As a small reward for my consistency, I went on a trip to the Bahamas in the late summer. haha
My husband and i just had this conversation this morning. This is exactly how we wish to get our finances coordinated ahead of retirement. Can I get access to your advisor?
Sure, the advisor that guides me is monica mary strigle, wife has her direct line, I’m not always in town. lady is hot topic in downtown manhattan…shouldn’t be a hassle finding her, browse.
Hey Javier, just did a copy paste search of Monica Mary Strigle on my browser and her page popped up immediately, thank you for saving me hours of researching.
If they would just lower the damn prices and raise the damn wages instead of making so many videos about vibes everything would be solved 🙄
nice try Democrats but i’m not voting for you
im not American
I don’t know a single democrat who feels positive about this economy.
The disconnect is because they tracking changes in inflation not price levels…. The solution is simple track price levels
Worse off last 4 years definitely
No,,, Retailers are too high. One example: ALDI fruit bars were longer and packed in 8 per box. Now they’re 6 per box and shorter at a higher price. Food prices aren’t adjusting and they’re worse. They’ve seen we’ll pay that higher price and they keep raising prices and give you less. CNBC’s well heeled reporters don’t get it and never will. They don’t speak for the average person.
It’s all because of the price of groceries. Everything else, we can tolerate.