Story perspectives

Declining Consumer Sentiment Sparks Recession Fears in U.S.

5/23/2025

23 5

Summary

Story summary

Doug Ramsey, CIO of The Leuthold Group, cautions that declining consumer sentiment may trigger a US recession.
The Conference Board's Expectations Index hit 54.4 in April, the lowest level since 2011.
Consumer inflation expectations increased to 5%, with 67% predicting higher unemployment rates.
Ramsey suggests that lowered consumer expectations could nearly halt GDP growth.
The economy shrank by 0.3% in Q1, while current quarter growth is forecasted at 2.4%.

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Story summary

Doug Ramsey, CIO of The Leuthold Group, cautions that declining consumer sentiment may trigger a US recession.
The Conference Board's Expectations Index hit 54.4 in April, the lowest level since 2011.
Consumer inflation expectations increased to 5%, with 67% predicting higher unemployment rates.
Ramsey suggests that lowered consumer expectations could nearly halt GDP growth.
The economy shrank by 0.3% in Q1, while current quarter growth is forecasted at 2.4%.