In economics, perception can quickly become reality. If consumers begin to believe their fiscal future will be grim, then they will cut their spending, which will slow growth as firms see less demand. Of course, the news media has a lot of power to shape public opinion. As a result some are complaining that the media's gloomy business reporting is making what would otherwise be a robust recovery very weak. But a Real Times Economics post today dispels that myth:
The balance of positive to negative news stories about the U.S. economy in the U.S. press in August was the highest it has been since the recession started in December 2007, according to the latest monthly survey of media sentiment, the Dow Jones Economic Sentiment Indicator.
In fact, the indicator has been rising steadily since April. So don't blame us!
Read the full story at Real Time Economics.
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