Despite strong economic data, many Americans continue to feel negative about the economy.

The University of Michigan uses these types of questions to determine the Consumer Sentiment Index, an economic indicator that gauges public sentiment towards the economy.

"Joanne Hsu, director of the Surveys of Consumers at the University of Michigan, stated that comparing the measure over time will give us insight into the attitudes of consumers, which is crucial as consumer spending accounts for over two-thirds of GDP."

Although inflation is slowing, the labor market is healthy with low unemployment, and stocks are still in a bull market, consumer sentiment remains below pre-pandemic levels.

""Economists, unlike normal people, think in terms of inflation while the general public focuses on price levels," stated Paul Donovan, UBS Global Wealth Management's chief economist."

The disconnect between consumer sentiment and economic reality could significantly impact the 2020 U.S. presidential election.