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Understanding Consumer Stress and Sentiment
The hosts introduce Katie Thomas, head of the Carney Consumer Institute, who explains their new consumer stress index and the factors it considers beyond traditional economic and financial metrics. They discuss the optionality consumers have in dealing with rising prices and interest rates, as well as the creation of an index and areas that may not be well-tracked by economic statistics. The chapter also explores the timing of research on consumer behavior, the disconnect between how consumers feel about the economy and how they say they're feeling, and the interconnectedness of geopolitical tensions, energy prices, and purchasing behavior.