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Record Low Consumer Sentiment Amid K-Shaped Recovery

12/23/2025

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Summary

Story summary

The University of Michigan's Economic Conditions Index fell to 50.4, a record low for U.S. consumer sentiment, below 2022 and 2008 lows.
Inflation has eased to 2.7%, but Americans see big-ticket purchases as increasingly unaffordable.
Economists describe a K-shaped recovery, with affluent households thriving while lower-income consumers struggle.
Mark Zandi of Moody’s Analytics says 22 states are in recession despite national growth projections.

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Story summary

The University of Michigan's Economic Conditions Index fell to 50.4, a record low for U.S. consumer sentiment, below 2022 and 2008 lows.
Inflation has eased to 2.7%, but Americans see big-ticket purchases as increasingly unaffordable.
Economists describe a K-shaped recovery, with affluent households thriving while lower-income consumers struggle.
Mark Zandi of Moody’s Analytics says 22 states are in recession despite national growth projections.