Is Increasingly Gloomy Economic News Coverage Impacting Consumer Confidence?

Economic news coverage has become more negative over time, even when accounting for actual changes in economic fundamentals.

There is evidence linking negative news sentiment to declines in consumer sentiment and confidence.

The gap between actual economic fundamentals and negative news sentiment has recently started to close after widening since 2018.

It's unclear whether negative news drives consumer pessimism or vice versa, and if it impacts perceptions of personal vs. national economic outlooks differently.

Understanding if and how media bias impacts consumer behavior and political views is an important area for further research.