Consumer Pulse - Will 2024 be the end of the vibecession? | January 4, 2024

The current state:

Vibecession is a term widely used to describe a period during which the economy is relatively good according to financial data, but the public is pessimistic about the current or future economic situation. With consumer spending accounting for two-thirds of the U.S. economy, how we feel about the current economic situation is often more influential on spending than the actual economic reality. 


How we’re feeling right now:

According to this week’s Consumer Pulse, the vibe is pretty good: 58% of respondents say they are somewhat or very confident in their personal financial position going into 2024. However, consumers continue to be concerned about inflation and the threat of a recession, and they don’t feel like they’ve caught up to where they were pre-COVID.

•    62% believe inflation will spike again in the New Year.

•    51% are concerned about a recession.

•    47% feel their finances are in worse shape than before COVID.


Why it matters:

Home sales are a major driver of home improvement activity, and this week’s report shows that 37% of Gen Z (ages 21+) and 42% of Millennials would like to buy a new house in 2024. While conditions in the housing market have improved – mortgage rates have been declining, there’s an uptick in new home construction, and prices have been moderating – consumers will need to feel confident that now is the right time to buy. An end to vibecession could be the key to a rebound in the housing and home improvement sectors. 

Do you want to take the Pulse of your customers? Our Insights team will partner with you to design a study that will help you better understand your customers and their problems, and how your brand can win at retail. 

23-SFA-0566-Consumer Pulse #120_Vibesession


To get additional insight into what this means for brands and retailers, read the entire study.


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