The University of Michigan Consumer Sentiment Index for November showed the stark divide. The index showed that consumer sentiment for Democrats fell from 91.4 to 81.3, while sentiment for Republicans skyrocketed from 53.6 to 69.1.
CONGRESSIONAL REVIEW ACT: WHAT TO KNOW ABOUT THE TOOL REPUBLICANS HOPE TO USE TO UNDO BIDEN RULES
The divide was even more dramatic when it came to future expectations. The index of consumer expectations plunged from over 93 to 75.4 for Democrats, while Republican expectations rose from a low 61.4 to over 89.
Total consumer sentiment — combining the views of Republicans, Democrats, and independents — was little changed, rising 1.8% from the month before.
“Overall, the stability of national sentiment this month obscures discordant partisan patterns,” survey director Joanne Hsu said. “In a mirror image of November 2020, the expectations index surged for Republicans and fell for Democrats this month, a reflection of the two groups’ incongruous views of how Trump’s policies will influence the economy.”
The index of current conditions showed insignificant changes from either party because the election has yet to tangibly affect the overall economy.
“Ultimately, substantial uncertainty remains over the future implementation of Trump’s economic agenda, and consumers will continue to re-calibrate their views in the months ahead,” Hsu added.
Year-ahead inflation expectations fell a bit from 2.7% in October to 2.6% this month. Notably, that is the lowest that inflation expectations have been since December 2020, right in the midst of the pandemic and before the country began grappling with its most brutal inflation surge in decades.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Inflation has, on balance, been falling since peaking in June 2022. Annual inflation is now running at about 2.6%, down from a peak of about 9% but still above the Federal Reserve’s 2% goal. Generally speaking, consumer sentiment has increased since inflation began falling.
The labor market has remained resilient during the inflationary plague, although it has recently shown some signs of weakening. Further softening could result in consumer sentiment falling down the line.
This article was originally published at www.washingtonexaminer.com
