Americans Feel Much Better About The Economy As Inflation Slows

Americans’ attitudes on the economy are improving substantially as inflation slows, as reported by Bryan Mena for CNN.

Inflation eased markedly throughout 2023 without a sharp rise in unemployment, which has helped perk up moods among US consumers in recent months.

The University of Michigan’s latest consumer survey showed that sentiment improved greatly this month, soaring 13% from December, according to a preliminary reading released Friday.

Sentiment reached its highest level since July 2021. “Consumer views were supported by confidence that inflation has turned a corner and strengthening income expectations,” said Joanne Hsu, the university’s Surveys of Consumers director.

“Over the last two months, sentiment has climbed a cumulative 29%, the largest two-month increase since 1991 as a recession ended.”

Inflation eased markedly throughout 2023 without a sharp rise in unemployment, which has helped perk up moods among US consumers in recent months.

It remains to be seen whether inflation could drift all the way to the Federal Reserve’s 2% target without interest rates staying higher for longer or triggering massive job losses. But for now, Americans are rejoicing in the steady progress on the inflation front.

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