Americans Are Split on Economy Despite Growth
More than half of Americans believe the U.S. is in a recession, even though the GDP has been growing for several years. A recent Guardian/Harris poll shows 56% think we're in a recession, and 58% blame President Joe Biden for the perceived economic downturn.
Technically, the U.S. isn’t in a recession, which is defined by two consecutive quarters of declining GDP. In fact, GDP grew by 1.6% in the first quarter of 2024, though this is slower than the 3.3% growth in the last quarter of 2023.
Despite positive economic indicators, like the U.S. GDP growth outpacing other developed nations, many Americans feel the pinch of high living costs and inflation. This disconnect between economic data and public sentiment has been a challenge for the Biden administration.
With the November election approaching, Biden's campaign aims to highlight economic gains post-pandemic and shift voter perception. White House Press Secretary Karine Jean-Pierre acknowledges there's still work to be done to bridge the gap between economic performance and public feeling.
Why This Matters To Our Industry:
Consumer sentiment directly impacts demand for goods and services. If people believe we’re in a recession, they may cut back on spending, which can slow down the movement of goods. Even if the economy is technically growing, perception is powerful and can influence market behaviors and logistics planning.
Our Take:
Perception is everything! Even with a growing GDP, the belief in a recession can slow down consumer spending and, in turn, impact our industry. Time to stay agile and ready to adapt to shifting consumer behaviors and market conditions.
As financial markets reopened after the attempted assassination of Donald Trump, it became clear that the Trump trade is gaining momentum.