From Fortune:

In the summer of 2022, Kyla Scanlon coined the term “vibecession” to describe the public’s uncertain economic sentiment. Despite positive economic data, many Americans continued to feel apprehensive about the economy.

Scanlan noted signs of improvement in the economy, such as supply chain normalization, inflation fading, and unemployment remaining low. These trends were further confirmed by favorable economic data, like high stock prices, rising retail sales, and GDP growth.

Consumer sentiment surveys have recently shown a significant improvement, after months of indicating economic pessimism. In particular, the Conference Board’s consumer confidence index surged, and the University of Michigan’s Index of Consumer Sentiment saw a significant increase.

Reasons for the delayed recovery in sentiment include stagnant wage growth and widespread inexperience with inflation. However, economists expect that sustained real wage growth and greater acceptance of stable prices will lead to improved consumer sentiment moving forward.



Read more: The vibecession is fading as inflation cools and wages rise