Consumer sentiment index divergence?

in #partisanshiplast year

image.png

https://www.economist.com/graphic-detail/2023/09/07/the-pandemic-has-broken-a-closely-followed-survey-of-sentiment

I guess I have to reconsider my hypothesis that this divergence was caused by partisanship (or at least a more nuanced hypothesis on that dimension).

What's interesting as they note is that the same model still works well to predict future spending. In other words, consumer sentiment may be poor, but people's actual behaviours reflect the good economic data.

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