A divergence in consumer surveys adds to recession worries for America
A strong jobs market is not enough to negate the damage from soaring inflation
AMERICANS HAVE much to like and much to dislike about the economy these days. Thanks to a red-hot labour market, it is unusually easy both to find work and negotiate a pay increase. At the same time, rising prices have taken a bite out of their earnings in real terms. To get a handle on how people perceive these opposing trends, analysts can look at surveys that measure consumers’ sentiment about the economy. There is, however, a problem at the moment. Like the contradictory trends, the two main surveys are presenting different pictures.
This article appeared in the Finance & economics section of the print edition under the headline “Surveying the coming wreckage”
Finance & economics April 30th 2022
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