The numbers: Growing confidence among Republicans in a victory for Donald Trump helped push a survey of consumer sentiment to a six-month high less than two weeks before the U.S. presidential election.
The first of two readings in October of consumer sentiment rose to 70.5 from 70.1 in the prior month, the University of Michigan said Friday. It’s the highest reading since April.
Republicans became more confident about the outcome of the election while confidence among Democrats fell slightly.
A tight and bitterly contested election between former President Trump and Vice President Kamala Harris appeared to be going down to the wire.
Consumer sentiment is still at depressed levels, however. Sentiment stands well below a post-pandemic high of 88.3 in 2021.
Key details: The percentage of consumers who expect a Harris presidency fell from 63% last month to 57% in October, mirroring a shift in public polling. The most recent polls show Trump either catching up to Harris or even inching ahead.
Sentiment of Republicans rose 8% in October and it increased 4% among independent voters. Sentiment for Democrats fell 1%.
Lower interest rates also lifted the mood of consumers, especially those looking to buy big-ticket items such as cars and houses.
Americans think inflation will average 2.7% in the next 12 months, unchanged from September. The current rate of inflation is 2.4%, based on the consumer price index.
Big picture: The economy has avoided a widely predicted recession and is growing briskly, but several years of high inflation has left many Americans frustrated.
The frustration has helped Trump as he battles Harris to be the next commander-in-chief.
Many business leaders have indicated they are awaiting the outcome of the election before solidifying business plans for next year.
