Watch what they do, not what they say.
Consumers and businesses tell pollsters they are downbeat on the economy and uncertain about the future. But that pessimism doesn’t seem to be stopping them from contributing more to economic activity.
In the end, actions — not sentiment — will determine whether the U.S. can skirt another recession.
Individuals tell pollsters the economy is bad, bad, bad. But they are still shopping, shopping, shopping. September U.S. chain-store sales rose by 5.5% on a year-over-year basis, according to the International Council of Shopping Centers.
Since the end of July, a large percentage of consumers have said now isn’t a good time to buy a major purchase, like a car, according to a survey released Thursday by the Royal Bank of Canada. But car sales popped up to an annual rate of 13.1 million in September, the best showing since April.
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