Not sure why this is particularly surprising. During inflationary periods, consumer sentiment goes down because we are losing future buying power, and consumption goes up because we are pulling the trigger on durable goods that will be more expensive if we wait.
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George Pearkes
Extremely cool FEDS Note that links consumer sentiment data to actually spending at the respondent level and shows that the disconnect between sentiment and spending post-COVID was extremely unique and driven by inflation perception not real incomes.
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