The state of the economy in one sentence 📝

Economy good, sentiment bad 🤷🏻‍♂️

An AI-generated image of writing in a notebook.

Consumer sentiment deteriorated sharply in May, according to new survey data from the University of Michigan.

I thought this one sentence from the report was illuminating in terms of nuance:

While current incoming macroeconomic data show no sign of recession, consumers’ worries about the economy escalated in May alongside the proliferation of negative news about the economy, including the debt crisis standoff.

In other words, the economy is actually in good shape but the news is giving consumers the perception that things are bad.