Story perspectives

U.S. Economy: Strong Growth Amid Falling Consumer Sentiment

1/29/2026

Summary

Story summary

Economists project U.S. fourth-quarter 2026 GDP growth at 5.4%, signaling robust near-term expansion.
Consumer sentiment has fallen to its lowest level since 2014 as inflation continues to strain households.
High-income households are driving spending while lower-income families face financial hardship, contributing to a K-shaped economy.
Retail spending remains resilient, with some consumers indulging in small luxuries, suggesting a disconnect between sentiment and behavior.

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Story summary

Economists project U.S. fourth-quarter 2026 GDP growth at 5.4%, signaling robust near-term expansion.
Consumer sentiment has fallen to its lowest level since 2014 as inflation continues to strain households.
High-income households are driving spending while lower-income families face financial hardship, contributing to a K-shaped economy.
Retail spending remains resilient, with some consumers indulging in small luxuries, suggesting a disconnect between sentiment and behavior.