The University of Michigan ICS is the gold standard sentiment survey measuring consumer sentiment.1 The survey has historically shown a very strong correlation with “hard” economic data such as inflation and unemployment. But before more bad analysis gets done on the vibecession, people need to know they’re working with dubious data. As with election polls, the ICS has struggled amid a shift away from telephone polling. There are issues both with partisan nonresponse, with some political groups more likely to respond than others, and partisan expressive response, with survey-takers using questions about the economy to express political sentiment.
So the problems with the ICS are these:
The switch to online polling made responses more negative and,
There are too many Democrats in the sample.
Thus, ICS data since mid-2024 is not comparable to past periods. Here is the partisanship of the sample over time:
And Democrats right now say they hate the economy with Trump in charge.
When adjusted for these issues, the ICS should be substantially higher than the Great Recession lows we have witnessed over the past year. Weighting the survey to Pew’s National Public Opinion Reference Survey — what Nate Cohn called “perhaps the most important poll you’ve never heard of” — would place the ICS at a level more like that in 2013, when the economy was growing after the Great Recession but unemployment remained stubbornly high and wages stubbornly low. This adjustment would bring the survey in line with other measures of consumer confidence, such as those from the Conference Board, Gallup, and YouGov.