Last week, the U.S. Department of Commerce released data that showed the country’s gross domestic product grew, at a better than expected, 4.9%.

Russell Weaver, an economic geographer and director of research at the Cornell ILR Buffalo Co-Lab, told Capital Tonight that “there was a ton of good news in last week’s economic report” but adds there are “some warning signs” in the data as well.

The GDP growth data comes after speculation by economists that a recession was on the horizon and the Federal Reserve had been raising interest rates. Weaver said the strong GDP growth was spurred by consumer and “substantial” government spending in the third quarter of 2023. The GDP data was preceded by a September jobs report that showed job growth doubled expectations.

Despite the strong economic indicators, everyday Americans aren’t confident in the state of the economy. The latest Gallup poll shows that just 20% of those surveyed believe the economy is in an excellent or good position.

One warning sign that Weaver pointed to was a drop in the disposable income of Americans. While Americans are spending more, they have less to spend, due in part to inflation. The Federal Reserve has set a target of a 2% inflation rate and have been raising interest rates to ease inflation, which is at 3.7%, and to cool the job market.

With the good news and the warning signs, Weaver said the economy is in a “gray area” with all of the indicators “trending in the right direction” but adds “with international conflict, escalating housing prices, and uncertainty, that can change at any moment.”