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Consumer Sentiment Ticks Up Amid Partisan Flip
November 22, 2024
U.S. consumer sentiment increased for the fourth month straight in November, led by a big upswing in sentiment among Republicans following the presidential election.
The University of Michigan’s consumer sentiment index increased to 71.8 this month, its highest level since April. While up from October’s reading of 70.5, November’s final result was short of the 73.7 that economists polled by Reuters had expected and lower than the preliminary reading of 73.0 earlier in the month.
Economists from the University noted that while overall sentiment was stable with recent trends, underneath the surface there were “discordant partisan patterns” as Democrats and Republicans responded to the election. Overall sentiment among Republicans jumped 15.5 points, the largest swing since the 2016 election. On the flipside, sentiment plunged 10.1 points amid Democrats.
The survey also found that, while consumers have muted inflation expectations in the year ahead, they see greater price increases over the long term. The survey found that one-year inflation expectations are at 2.6%, the lowest since December 2020. Consumers’ five-year inflation expectations jumped, however, to 3.2%, the highest level in a year.
