Consumers were feeling a little bad about the economy under the Biden-Harris administration in early November, but on the eve of Donald Trump's landslide victory in the race for the White House, they had high expectations for the future. It has increased.
The University of Michigan Consumer Sentiment Index was 73.0, up from 70.5 in September. This was a bigger improvement in sentiment than economists expected.
The boost in sentiment was solely due to the expectations component of the index. While the index of consumer expectations soared, indicators of the current situation recorded a decline.
The survey for the index, which ended on Monday, the day before the election, appears to reflect growing hope among many Americans that the changing of the guard at the White House will improve the economy. The expectations index for Republicans rose from 61.4 to 72.0, the highest level since November 2020.
Expectations among Democrats, which were already quite high, rose slightly. Among independents, the expectation index decreased slightly.
As things stand, there has been a significant decline among independents and a significant decline among Republicans. Only Democrats saw an increase in the current status index.
The survey shows how much Trump's victory was due to heightened expectations. The next release is scheduled for November 22nd and will include data from surveys conducted after the election.
