Although the U.S. economy appears strong based on economic metrics, many Americans feel differently. A June survey by Affim found that 60% of Americans believe there is a current recession; most respondents state that it began around March 2023 and could go until mid-2025. Their primary reasons centered around higher costs.

Persistent inflation has led to a lack of confidence in the economy, even despite economic growth. The National Bureau of Economic Research defines a recession as a significant decline in economic activity extended over at least a few months, and the last official recession was in 2020 at the start of the COVID-19 pandemic. Many Americans struggle with the high prices for everyday essentials, and this disconnect between their financial standing and the economy’s performance has been labeled a “‘vibecession’” by economists. 

While wealth has grown for homeowners and those in higher income brackets, a significant portion of the population feels behind. This has led to financial strain, with more consumers relying on credit cards to make ends meet while falling behind on payments. 

In summary, despite positive indicators of economic growth, such as increasing gross domestic product (GDP), the perception of a recession persists among many Americans due to inflation, rising costs, and unequal wealth.