The Impact of News About the Recession on Consumer Sentiment in the United States

Dejan Romih () and Valentin Toader
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Dejan Romih: University of Maribor
Valentin Toader: Babes Bolyai University of Cluj-Napoca

A chapter in Sustainable and Resilient Businesses in the Global Economy, 2025, pp 185-197 from Springer

Abstract: Abstract News, whether good or bad, can have an impact on consumer sentiment. In this paper, we examine the impact of news about the recession on consumer sentiment in the United States. Using a vector autoregressive model, we find that an unexpected increase in news about the recession has an immediate impact on consumer sentiment in the United States. To reach this conclusion, research hypotheses are developed based on an extensive review of the literature on the relationship between news and the evolution of consumer sentiment and other macroeconomic variables. The methodology is then explained, the results are discussed, and the paper ends with conclusions.

Keywords: Consumer sentiment; News; Recession; United States (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-75883-6_12

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DOI: 10.1007/978-3-031-75883-6_12

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