U.S. Consumer Sentiment Rises Slightly On Democrat Optimism Over Harris Bid

A surge in optimism among Democrats over the prospects of Vice President Kamala Harris lifted US consumer sentiment slightly this month, Paul Wiseman reported for the Associated Press (AP).

The survey found that 41% of consumers considered Harris the better candidate for the economy, versus the 38% who chose Donald Trump. I Photo: Kamala Harris Facebook

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, while Republicans’ sentiment fell. The survey found that 41% of consumers considered Harris the better candidate for the economy, versus the 38% who chose Donald Trump.

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.

However, it remains well below healthy levels. The Michigan index regularly registered in the 90s and occasionally crossed 100 before the COVID-19 pandemic.