🚨 Confidence Cracks: US Consumer Sentiment Hits a 12-Year Low as Recession Fears Mount
The disconnect between economic spreadsheets and kitchen table reality has officially reached a breaking point. According to the latest data from Axios and the Conference Board, U.S. consumer confidence has plummeted to its lowest level since May 2014.
At a reading of 84.5, we aren't just "worried"—we are more pessimistic than we were during the height of the 2020 lockdowns or the 2022 inflation spike.
📉 The Anatomy of the Slump
While some indicators show a resilient GDP, the "average" American experience is telling a much darker story:
The Sticker Shock Fatigue: Inflation may be "cooling" in technical terms, but the cumulative price hikes since 2021 have created a permanent higher cost of living that wages haven't fully chased down.
The "Expectations" Cliff: The index measuring where we think we'll be in six months has fallen to 65.1. In economic history, any number below 80 is essentially a "Recession Incoming" siren.
A Cooling Labor Market: For the first time in years, the "Jobs Plentiful" sentiment is shrinking. The era of easy job-hopping for a 20% raise is effectively over.
The "K-Shaped" Divide
We are seeing a massive split in the American experience. While the top earners are watching their portfolios hit all-time highs, the majority of households are feeling the squeeze of "Stagflation Lite"—where prices stay high while economic momentum slows.
Bottom Line: People aren't just looking at the numbers; they’re looking at their bank accounts after the grocery run. Until the "cost of existing" stabilizes, the vibe is likely to stay in the basement.
