A report has found that 59% of Americans mistakenly believe the U.S. is in a recession.

• A recent report indicates that 3 out of 5 Americans incorrectly believe the U.S. is currently experiencing a recession due to higher costs and financial strain.
• The disconnect between the economy's performance and people's perceptions of their financial well-being has been a challenge for economists.
• Some say we're in a "vibecession."

Despite ongoing inflation and high interest rates, the U.S. economy has shown impressive resilience.

A recent survey of 2,000 adults by Affirm in June found that 59% of Americans incorrectly believe the U.S. is currently in a recession.

According to Affirm, most respondents believe that a recession began 15 months ago, in March of the previous year, and may continue until July 2025, due to higher costs and challenges in making ends meet.

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We are not in a recession

Gene Goldman, the chief investment officer at Cetera Financial Group in El Segundo, California, stated that our current economy is a "Goldilocks" economy.

Despite earlier recessionary predictions, the country has grown since the Covid-19 pandemic.

According to the National Bureau of Economic Research, a recession is defined as a substantial decrease in economic activity that affects the entire economy and persists for an extended period of time. The most recent occurrence of this was in early 2020, when the economy experienced a sudden halt.

Over the past 100 years, there have been over a dozen recessions, some lasting up to 1.5 years.

Despite the country's economic status, many Americans are facing financial difficulties due to high prices for daily necessities, and most have depleted their savings and are relying on credit cards to survive.

"Vishal Kapoor, senior vice president of product at Affirm, stated that money is a top concern for consumers, who are resilient but are feeling the impact of higher prices."

The disconnect between the economy's performance and people's perceptions of their financial well-being has been a challenge for economists.

We're in a 'vibecession'

Joyce Chang, JPMorgan's chair of global research, stated at the CNBC Financial Advisor Summit in May that we are in a "vibecession."

Concentrated wealth creation has been among homeowners and upper-income groups, leaving about one-third of the population out, resulting in a disconnect, according to Chang.

The widening disparity between the wealthy and nonwealthy is becoming increasingly evident, as rising rents, high borrowing costs, and low wage growth have disproportionately affected lower income households.

To be sure, it's not just a "vibe."

Financial strain is becoming more evident as consumers struggle to cope with rising prices and higher interest rates.

An increasing number of borrowers are falling behind on their monthly credit card payments, with 9.1% of credit card balances transitioning into delinquency in the second quarter of 2024, according to the New York Fed. Additionally, more middle-income households anticipate struggling with debt payments in the coming months.