Economic Uncertainty (EU) Score Remains Low And Not Rising Substantially

Economic uncertainty is a closely watched metric by economists. Scholars like Alexopoulos & Cohen and Baker, Bloom & Davis have constructed simple narrative indicators of economic uncertainty by looking for the keywords "economy/economic" and "uncertain/uncertainty" appearing together in news coverage as an indicator of press attention to an uncertain economic climate.

The timeline below tracks the Economic Uncertainty (EU) score computed over CNN, MSNBC and Fox News showing that, while there has been a slight increase since the end of last year, it has largely leveled off and remains far below its 2019 and 2020 levels and vastly off its 2010-2013 levels.

The streamgraph version shows this even more clearly:

While the EU score for business channels is elevated compared with its May 2021 trough, it has largely stabilized and remains well below its 2020 levels.