For many years now, Americans have heard that the performance of their economy can be characterized as lackluster. It appears that more Americans have come to terms with that reality. That’s how the people at the University of Michigan who manage the Survey of Consumers are characterizing the disconnect between soft economic growth and improving household confidence.
A recent report indicated that the University of Michigan’s consumer sentiment index expanded to ninety six point one in June, the second highest reading in eight years. According to Richard Curtin, director of the University of Michigan’s Survey of Consumers, the gain in confidence is "due to both an improving economy from the consumer perspective, but it also may reflect the acceptance of the diminished economic prospects in the years ahead."
As reported by Bloomberg, each successive economic expansion since the nineteen nineties has been weaker. The U.S. economy actually shrank during the first three months of the year for a second consecutive year, but consumers are taking mediocre performance in stride.
