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The Consumer Sentiment vs. Consumer Spending Puzzle

Wherever consumer sentiment goes, consumer spending usually goes too. They’re like buddies that do everything together. Consumer sentiment wants a hair cut, its buddy consumer spending does too.

But lately, these friends are drifting apart.

While consumer sentiment about the economy is down … spending remains strong. 

And not just that… Interest rates are still high, inflation is growing, tariffs have made the prices of goods go up. And yet, consumer spending looks good. What gives?

Today - a consumer spending mystery. Is the economy actually healthy? Or is something distorting our view of the economy?

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This episode was hosted by Sarah Gonzalez and Kenny Malone. It was produced by James Sneed. It was edited by Meg Cramer and fact-checked by Sierra Juarez. It was engineered by Debbie Daughtry and Kwesi Lee. Alex Goldmark is Planet Money's executive producer.

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