Consumer Sentiment Rises, Reflecting Political Divisions After Trump Victory

The University of Michigan's survey shows a partisan split in economic optimism, with Republicans surging and Democrats declining post-election.

The University of Michigan Consumer Sentiment Index rose to 71.8 in November, marking its highest level since April and the fourth consecutive monthly increase.
Republican consumer sentiment surged by 15.5 points following Donald Trump's election win, while Democratic sentiment dropped by 10.1 points, reflecting sharply divergent economic outlooks.
Overall consumer sentiment fell short of economists' expectations, coming in below the preliminary reading taken before the election and the forecast of 73.5.
Year-ahead inflation expectations dipped to 2.6%, the lowest since December 2020, but long-term inflation expectations increased to 3.2%, indicating uncertainty about future price stability.
Economists note potential risks of rekindled inflation due to Trump's proposed economic policies, including tax cuts, higher tariffs, and restricted immigration.