Is the U.S. in a “vibecession”? Here’s why Americans are gloomy even as the economy improves. [Video]

The labor market is roaring ahead, wages are rising and inflation is slowing — all key metrics that economists point to as showing a resilient and strong U.S. economy. The problem is Americans aren’t feeling it. 

The disconnect between gloomy consumers and upbeat economic data has sparked plenty of debate over the gap, with some experts terming it a “vibecession.” The idea behind the term is that Americans are basing their economic views on “feelings,” rather than on what’s actually happening in their financial lives.

For instance, inflation has come down a long way from its 40-year peak of 9.1% in June 2022. But about 3 in 4 consumers in swing states said they believe inflation is going the “wrong way,” according to a recent Wall Street Journal poll.

But there may be more than vibes behind Americans’ dour views, …