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Persistently Pessimistic: Consumer and Small Business Sentiment After the Covid Recession

Abstract: Both consumer and small business sentiment indexes remain very pessimistic by historical standards. In this article, we take a closer look at possible explanations. Our analysis suggests that after the Covid-19 recession in the United States, the responses of consumers and small business owners to sentiment-related surveys have become less sensitive to labor market conditions.

Keywords: Microeconomics;

JEL Classification: D12; M21;

Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2023-11

Volume: no 490

Pages: 9