From February to April 2020, the country experienced its most recent recession, according to Investopedia. And now consumers think we’re experiencing another one.
A recent survey shows that three in five Americans think the country is in a recession. Out of the 2,000 people surveyed, 68% cite rising living costs and inflation as the top indicators.
Joyce Chang, J.P. Morgan’s Chair of Global Research, believes we’re in a “vibecession,” a disconnect between economic indicators and public perception. “The wealth creation [over the last few years] was concentrated among homeowners and upper-income brackets,” said Chang, “but you probably have about one-third of the population that’s been left out of that — that’s why there’s such a disconnect.”
Goldman Sachs recently lowered its recession probability forecast to 20% after retail sales for July were higher than expectations, along with lowered weekly unemployment claims exceeding estimates.
“Everything looks great but when you look beneath the surface, the disparity between the wealthy and nonwealthy is widening dramatically,” said Gene Goldman, Chief Investment Officer at Cetera Financial Group.