Muted consumer sentiment may not presage low US growth – study
Kansas City Fed research says people’s pessimism does not automatically mean they will spend less
US consumers’ sentiment is not a reliable indicator of how much they are prepared to spend, researchers with the Federal Reserve Bank of Kansas City have found.
“Recent declines in consumer sentiment have prompted concerns about an impending slowdown in spending growth,” says the paper, which was published on May 16. “However, the link between consumer sentiment and growth in real household spending has been modest historically, suggesting changes in consumer sentiment are unlikely to
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