The historically strong relationship between sentiment and consumer spending has decayed over the last few years. Although households have thus far persevered through the frustration of rapid price increases and higher interest rates this cycle, the University of Michigan’s consumer sentiment survey has begun flashing new hints for a future pullback in personal consumption. In this episode, we talk with Joanne Hsu, Director of the Surveys of Consumers at the Institute for Social Research at the University of Michigan, about the mechanics of the U Mich survey, understanding post-pandemic economic resilience amid persistent pessimism, and why deteriorating sentiment this year could presage a downturn.