Consumer Sentiment Slumps, Consumer Spending Rises
If you trust the surveys, we’re seeing the best of times and the worst of times. More Americans think we’re on the “right track” than at any time in over 20 years. Yet consumer sentiment is at the worst level in four years.
According to a recent Economist/YouGov poll, 41 percent of Americans now say the country is on the right track, the highest level since 2004. This remarkable improvement stands in stark contrast to the reported plunge in consumer sentiment, which according to the University of Michigan’s Consumer Sentiment Index for March 2025, sits at its lowest level since 2021.
There’s also an extremely wide gap between consumer sentiment about current conditions and expectations, and there has been for years now. Consumers have basically been predicting a severe downturn ever since they got slammed by…
