Ann Arbor Times

The presidential election has had minimal impact on consumer sentiment, which has increased for the fourth consecutive month, reaching its highest point since April 2024. Economist Joanne Hsu, director of the University of Michigan Surveys of Consumers, noted that Donald Trump's economic policies have positively influenced Republicans' economic outlook while Democrats remain more pessimistic.

Consumer sentiment remains on an upward trend, now over 40% above the June 2022 low but still below pre-pandemic levels. Hsu stated, "All year, consumers have repeatedly told us that the trajectory of the economy hinges on who becomes the next president," highlighting the uncertainty surrounding how future economic policies will be implemented.

Personal financial views improved for the third straight month as consumers reported higher incomes in November and anticipated further gains in the coming year. Despite these positive expectations, frustration with high prices persists among consumers.

More consumers expect a strengthening economy and favorable labor market conditions. Only less than one-third foresee an increase in unemployment next year, a decrease from 38% a year ago. Additionally, 32% of consumers anticipate improved business conditions in the coming year.

The Consumer Sentiment Index rose to 71.8 in November from 70.5 in October and is up from last November's reading of 61.3. The Current Index decreased slightly to 63.9 from October's 64.9 but is lower than last November's figure of 68.3. Meanwhile, the Expectations Index increased to 76.9 from October's 74.1 and surpassed last November's score of 56.8.

The Surveys of Consumers conducted by the University of Michigan Institute for Social Research uses a nationally representative sample with equal probability for selection across U.S households through web interviews each month.