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 Bank, Joe Carson, said recently that the US economy is not in a recession, but corporate profits are in a recession. While I cling to the traditional definition of recession (two consecutive quarters of negative real GDP growth), there is another component of the US economy that is in recession: consumer sentiment.

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The University of Michigan Consumer Sentiment Index rose slightly in the latest release, but remains depressed at 51.5. University of Michigan Buying Conditions for House also rose to 47.0, also a depressed reading.

While unemployment remains low, the price of gasoline is crushing the wallets of American households helping to cause a recession in consumer sentiment.

Biden feebly attempts to explain why 2 consecutive quarters of negative real GDP growth (better known as contraction) is NOT a recession.



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