Economic Sentiment Belies Strong Economic Estimates

2026-02-27 06:50:00 ET

Economic growth metrics for the United States have recently shown surprising resilience; however, consumers’ economic sentiment has not. According to the Atlanta Federal Reserve, real Gross Domestic Product is estimated to have expanded at an annualized rate of 4.2% in the fourth quarter of 2025, exceeding expectations and marking some of the strongest growth in the past two years. Growth was driven by firm consumer spending, stronger exports, and increased government outlays. Consumer expenditures rose 3.5 percent, the fastest pace of the year. These figures suggest a macroeconomy in expansion....

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