US consumer sentiment rises slightly on optimism over Harris' presidential prospects
A surge in optimism by Democrats over the prospects of Vice President Kamala Harris lifted U.S. consumer sentiment slightly this month
WASHINGTON — A surge in optimism by Democrats over the prospects of Vice President Kamala Harris lifted U.S. consumer sentiment slightly this month.
The University of Michigan's consumer sentiment index edged up to 67.8 after coming in at 66.4 in July. Americans' expectations for the future rose, while their assessment of current economic conditions sank slightly.
The spirits of Democrats and political independents rose. Republicans' sentiment fell. The survey found that 41% of consumers considered Harris the better candidate for the economy, versus the 38% who chose Republican nominee Donald Trump. Before President Joe Biden dropped out of the presidential race and gave way to Harris, Trump held an advantage on the issue.
Joanne Hsu, the university's director of consumer surveys, said she expects the index to bounce with changing poll results as the election nears. Consumers on both sides of the partisan divide say their economic outlook «depends on who's going to win the election,'' she said.
The Michigan index has rebounded after bottoming out at 50 in June 2022 when inflation hit a four-decade high. But it remains well below healthy levels. Before COVID-19 hit the economy in early 2020 — causing a recession followed by an unexpectedly strong recovery that unleashed inflation — the Michigan index regularly registered in the 90s and occasionally crossed 100.
»Consumers are still pretty glum overall by historical standards, but sentiment is on an improving trend,'' said Carl Weinberg, chief economist at High Frequency Economics.
Economists watch measures of Americans' spirits to gauge
Read more on abcnews.go.com
