Consumer Sentiment and Political Views Post-Election
Consumer sentiment rises to highest level since April, driven by more positive views among Republicans and independents following the election of Donald Trump. Democrats express concerns about Trump's policies leading to higher prices and inflation.
Key Points
- Index of consumer sentiment rose 3.1% to 74 in early December
- Index of current conditions saw a significant increase, driven by positive views on buying durables
- Democrats fear Trump's policies, especially tariffs, will lead to inflation
- Republicans optimistic that Trump will prevent inflation
Pros
- Consumer sentiment index rose to its best reading since April
- Boosted views among Republicans and independents following Trump's election
- Potential burst of consumer spending could lead to stronger employment gains and profits
Cons
- Democrats express concerns about Trump's policies leading to higher prices and inflation
- Decline in expectations index among Democrats
- Partisan differences in views regarding economic outlook