Americans' sentiment declines as economic downturn indicators increase

• The Consumer Sentiment Index from the University of Michigan recorded an eight-month low in consumer sentiment in the U.S. in July.
• In a 2024 poll, Gallup discovered that one-third of Americans identified economic problems as the country's top concern.
• The major reason is stubborn inflation cutting into people's paychecks.

The Consumer Sentiment Index from the University of Michigan recorded an eight-month low in consumer sentiment in the U.S. in July.

A survey by Affirm revealed that about 60% of Americans believe the U.S. is in a recession, while a 2024 Gallup poll indicated that one-third of Americans consider economic problems as the country's top issue.

"Joanne W. Hsu, the director of the Surveys of Consumers at the University of Michigan, stated that the economy is a top concern for people, even though there are many positive indicators, as people do not feel like they are thriving."

Inflation has been at its highest in 40 years under the Biden administration, reaching a peak of 9.1% in June 2022. Despite decreasing since then, persistent inflation has reduced American consumers' purchasing power.

During President Joe Biden's term, the average, inflation-adjusted, weekly paycheck decreased by approximately 4.4%, or $50, despite the fact that wages have risen faster under Biden than under former President Donald Trump's administration, according to calculations by Bankrate.

"Mark Hamrick, a senior economic analyst from Bankrate, stated that when one's purchasing power is diminished, what was once considered necessary is now at risk. This situation feels like a recession to many."

Watch the video above to see why the U.S. is experiencing recession-like symptoms.