Consumer Sentiment Remains Very Depressed (University of Michigan Sentiment Index Rises Slightly To A Depressed 51.5 While Buying Conditions For Housing Rose Slightly To A Depressed 47.0)

by confoundedinterest17

“A recession is two quarters in a row of negative growth.” — President Clinton, Dec. 19, 2000

My former colleague at Deutsche Financial institution, Joe Carson, stated not too long ago that the US financial system shouldn’t be in a recession, however company earnings are in a recession. Whereas I cling to the normal definition of recession (two consecutive quarters of damaging actual GDP progress), there’s one other element of the US financial system that’s in recession: client sentiment.

The College of Michigan Client Sentiment Index rose barely within the newest launch, however stays depressed at 51.5. College of Michigan Shopping for Situations for Home additionally rose to 47.0, additionally a depressed studying.

Whereas unemployment stays low, the worth of gasoline is crushing the wallets of American households serving to to trigger a recession in client sentiment.

Biden feebly makes an attempt to clarify why 2 consecutive quarters of damaging actual GDP progress (higher referred to as contraction) is NOT a recession.