The San Francisco Fed has developed a daily news sentiment index from 24 large daily newspapers from around the US. It is an exponentially-weighted index of using the lexicon of words associated with positive and negative economic news. It is a noisy series, but the smoothed trend tells us something about soft economics which may impact consumer spending decisions. It has come off the peak from the highs post-pandemic and is now hovering near zero. Zero may be a neutral signal but the direction is falling and worth watching this summer.
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