Planet Money The Consumer Sentiment vs. Consumer Spending Puzzle
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Nov 21, 2025 
Deiren Patkey, an Economist at the Federal Reserve Bank of Boston, dives into the baffling disconnect between consumer sentiment and spending. He highlights that despite low sentiment and economic pressures, spending remains robust, largely driven by the top 20% of earners. Patkey explains how credit card data reveals the true spending patterns, showing that high earners are insulated from economic turmoil. The discussion also touches on the K-shaped economy and the risks of a market shock that could threaten this spending strength.
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Economist's Survey Humor
- Deiren Patkey jokes about wanting to be selected for surveys and compares it to jury duty.
- The remark humanizes the data-collection process and survey limitations.
Hosts Joke About Forgetful Big Spenders
- Hosts riff about wealthy people forgetting expensive purchases like Hermes blankets or extra houses.
- The banter illustrates how high-end spending can escape memory and survey reporting.
Current Divergence Is Unusually Sharp
- The recent divergence between sentiment and spending is unusually sharp, second only to the COVID period.
- That makes economists question whether current spending reflects real resilience or a distortion.