Americans are thinking more positively about today’s economy with the recent cooldown on inflation, as reported in a new consumer survey.
The survey, conducted by the University of Michigan and reshared by CNN, unveiled a 13% rise in consumers’ attitudes toward the nation’s economic condition since December 2023. The statistic has not seen such an improvement in over two years, last recorded with such levels in July 2021. Joanne Hsu, the director of the survey, noted that consumers are growing more confident that the worst woes of rising prices for everyday goods are behind them.
“Consumer views were supported by confidence that inflation has turned a corner and strengthening income expectations,” explained Hsu. “Over the last two months, sentiment has climbed a cumulative 29%, the largest two-month increase since 1991 as a recession ended.”
Their sentiments are backed by inflation levels remaining steady, as well as the job market improving as well. Robert Frick, a corporate economist at Navy Federal Credit Union, elaborated further on the causes that led to the newly positive outlook.
“The powerful surge shows Americans are feeling the effects of lower inflation. That’s transmitted directly through prices at the pump, which have been falling since September, and less directly given wage increases have risen above the rate of inflation,” detailed Frick. “The strong jobs market also heavily influences Americans’ view of the economy in general.”
However, not all risks are totally voided even with the slowdown, with the federal government noting that Americans should be optimistic yet cautious about the economy. While inflation is easing, the housing market and interest rates are still at record-high levels, with a retreat to pre-pandemic rates and pricing seemingly out of the question.
For Black Americans, inflation had severely impacted their economic standpoint, thwarting
many Black households’ efforts to build wealth or lessen debts. With the additional issue of the pay gap, especially felt by women of color, the benefits of lowered inflation can only stretch so far.Despite this, Americans as a whole are starting to think positively about their financial futures.