Consumer Sentiment Diverges as Stock Investors Remain Bullish Amid Economic Concerns

Most Americans grew more pessimistic about the economy in September, according to the University of Michigan's Consumer Sentiment Index. The 5% monthly decline reflects widespread concerns about inflation and labor market weakness—except among one group.

Investors with significant stock portfolios maintained their Optimism as major indices repeatedly hit record highs. "The disparity underscores how equity exposure shapes economic outlook," said Plante Moran's Jim Baird. Those benefiting from the market rally show markedly different sentiment than the general public.

This divergence matters beyond Wall Street. Consumer spending—the economy's backbone—often correlates with sentiment surveys. The data suggests potential bifurcation in spending patterns between asset holders and cash-reliant households.