Current:Home > StocksUS consumer sentiment rises slightly on Democratic optimism over Harris’ presidential prospects -Zenith Investment School
US consumer sentiment rises slightly on Democratic optimism over Harris’ presidential prospects
View
Date:2025-04-12 13:17:27
WASHINGTON (AP) — 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.
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 whether they’re in the mood to shop, important because their spending accounts for about 70% of U.S. economic activity.
Since inflation struck more than three years ago, Americans have been feeling grumpy. As the November presidential election approaches, many blamed President Biden for higher prices.
Despite their sour mood, American consumers have kept spending anyway. Largely because of that, the economy grew at a healthy 2.8% annual pace from April through June. Their spending has continued into the current quarter: The Commerce Department reported Thursday that retail sales climbed 1% from June to July, biggest jump since January 2023 on strong sales at electronics shops, supermarkets and auto dealerships.
The Federal Reserve responded to inflation’s resurgence by raising its benchmark interest rate 11 times in 2022 and 2023, lifting it to a 23-year high. Inflation has cooled markedly since peaking at 9.1% in June 2022. By last month, it was down to 2.9%, edging closer to the Fed’s 2% target.
The central bank is now widely expected to begin cutting rates at its next meeting in September.
veryGood! (291)
Related
- Sarah J. Maas books explained: How to read 'ACOTAR,' 'Throne of Glass' in order.
- SFO's new sensory room helps neurodivergent travelers fight flying jitters
- Why members of two of EPA's influential science advisory committees were let go
- Moving abroad can be expensive: These 5 countries will 'pay' you to move there
- Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
- This was the average Social Security benefit in 2004, and here's what it is now
- Former Danish minister for Greenland discusses Trump's push to acquire island
- Gen. Mark Milley's security detail and security clearance revoked, Pentagon says
- Could your smelly farts help science?
- Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
Ranking
- The Best Stocking Stuffers Under $25
- Mets have visions of grandeur, and a dynasty, with Juan Soto as major catalyst
- As Trump Enters Office, a Ripe Oil and Gas Target Appears: An Alabama National Forest
- The Super Bowl could end in a 'three
- A Mississippi company is sentenced for mislabeling cheap seafood as premium local fish
- Louvre will undergo expansion and restoration project, Macron says
- Intellectuals vs. The Internet
- Could your smelly farts help science?
Recommendation
Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
Grammy nominee Teddy Swims on love, growth and embracing change
Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
Man can't find second winning lottery ticket, sues over $394 million jackpot, lawsuit says
South Korea's acting president moves to reassure allies, calm markets after Yoon impeachment
Alex Murdaugh’s murder appeal cites biased clerk and prejudicial evidence
Could Bill Belichick, Robert Kraft reunite? Maybe in Pro Football Hall of Fame's 2026 class