Individuals And Businesses Are Having A Major Disagreement About The State Of The Economy

There’s a lot to unpack here, but real quick we wanted to touch on what is probably the most interesting divergence that’s happening in the economy.

On the one hand, businesses sound increasingly pessimistic. Survey-based measures of the economy (like the regional Fed indices) have not been good, and the latest NFIB Small Business Confidence index was ugly.

You can see that there’s been a decline in companies saying they expect to increase investment or hire more.


On the other ones, individuals sound increasingly optimistic.

According to Gallup, economic confidence soared in September.


And as proof of those words being put into action, car sales in September hit a new post-crisis high.

Monthly US Auto Sales Since 2000 (SAAR, in millions of units)

Photo: Bloomberg, Business Insider

We’re not sure which way this will break, but it is interesting.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at