In the first report for third quarter economic growth, the U.S. economy grew at a 2.8% annualized rate, an indicator that many say confirms a soft landing. The Commerce Department reported that strong consumer and government spending is preventing a slowdown.

The performance was both impressive and disappointing to economists whose forecasts were anywhere from 2.6% to 3.1%.  Despite growth, consumer sentiment remains low.  The Brookings Institute released a study last week with a conclusion that consumer sentient has become decoupled from economic growth.

“Historically, consumer attitudes regarding the economy have closely tracked prominent macroeconomic indicators like GDP, unemployment, equity prices, and inflation. But since the pandemic, this relationship has fundamentally changed. By most measures, consumer attitudes about the economy have been divorced from the underlying economic conditions, with consumers feeling as poorly about the economy as they did in the immediate aftermath of the Great Recession.”

For more:

https://www.brookings.edu/articles/the-paradox-between-the-macroeconomy-and-household-sentiment/