More Americans are feeling better about their finances—here's why, in 5 charts

Americans Show Increased Economic Optimism #

After years of high inflation and the looming threat of a recession, Americans are experiencing a surge in optimism about the economy. Positive sentiment has increased by 29% since December, the largest two-month rise since 1991. Recent surveys and studies confirm this trend, with consumer sentiment hitting a five-month high in January and the percentage of adults expecting better financial prospects reaching its highest level since September 2021. Economists attribute this shift to factors such as wage growth, low unemployment, and slowing inflation. Stock market performance may also contribute to the improved outlook. While consumer sentiment has improved, it remains below pre-pandemic levels, and inflation remains above the Fed’s target.