vibecession

Americans are splurging on affordable luxuries like movies and collectible watches amid economic anxiety and inflation, sustaining consumer spending despite delayed major purchases. Economists describe this trend as a 'vibecession,' where high-income households maintain discretionary spending while lower-income consumers opt for smaller indulgences.

Consumer sentiment in the U.S. has dropped to its lowest level since 1952, with stark partisan divides in economic perceptions. Americans express deeper pessimism than during past crises like the Great Inflation, Volcker shock, and Great Recession, despite strong job markets and a booming stock market.

Most Australians believe the country is in or heading toward a recession, but economists are less concerned. The Reserve Bank of Australia has raised interest rates in response to high inflation and rising living costs.