American Disconnect: Recession Perception Vs. Expert Views
Experts touting the economy have not convinced the American people
The U.S. economy may not technically be in a recession, but most Americans believe it is.
That's according to a recent survey conducted by Bankrate, which found 59% of U.S. adults feel like the economy is in a recession, defined by two consecutive quarters of negative growth.
Regardless of income, households said they are feeling the pressure at about the same amount. Sixty percent of respondents in the lowest-income households, making under $50,000 a year, said the economy feels like it is in a recession. Of those in higher-income households making more than $100,000 annually, 61% agreed.
Gen Xers, ages 43-58, were the age group most likely to say the U.S. is in a recession at 65%, followed by millennials (ages 27-42) at 60%, baby boomers (ages 59-77) at 58%, and Gen Z (ages 18-26) at 55%.
Households with children younger than 18 were the most likely to say the economy is in a recession at 66%. Sixty-three percent of parents with children aged 18 or older agreed, along with 54% of adults with no kids.
An earlier Bankrate survey gives weight to those feelings, with 50% of Americans saying their overall financial situation has declined since the 2020 presidential election.
The latest findings indicated nearly two-thirds of Americans, 66%, say the current economic environment – including factors such as elevated inflation, rising interest rates and changes in income or employment – has negatively impacted their finances this year, and 85% of those who agree the economy is in a recession share that same sentiment.
More than three in five adults (64%) told Bankrate they have changed their financial habits this year because of the economic environment, and that jumps to 81% among those who believe the economy is in a recession.
"Americans judge the economy’s strength by their own individual experiences living within it, and nationwide numbers often don’t tell the same story as their finances."
