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

In: Sustainable and Resilient Businesses in the Global Economy

Author

Listed:
  • Dejan Romih

    (University of Maribor)

  • Valentin Toader

    (Babes Bolyai University of Cluj-Napoca)

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.

Suggested Citation

  • Dejan Romih & Valentin Toader, 2025. "The Impact of News About the Recession on Consumer Sentiment in the United States," Springer Proceedings in Business and Economics, in: Adina Letiția Negrușa & Monica Maria Coroş & Mark Anthony Camilleri (ed.), Sustainable and Resilient Businesses in the Global Economy, pages 185-197, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-75883-6_12
    DOI: 10.1007/978-3-031-75883-6_12
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