US consumer sentiment has increased to its highest level since April, with the index reaching 74 in December. However, this growth masks a significant shift in partisan views on the economy.
According to the University of Michigan’s survey, Democrats’ sentiment about the economy has dropped from 91.4 in October to 70.9 in December, while Republicans’ sentiment has risen from 53.6 to 81.6 over the same period.
The divide between the two parties is more pronounced when looking at future expectations. Democrats now expect a decline in economic conditions, with a reading of 48.7, similar to their outlook during the 2008 financial crisis and pandemic’s early stages. In contrast, Republicans’ optimism has skyrocketed to 105.9, surpassing their level before President Trump took office in 2020.
Survey director Joanne Hsu attributes Democrats’ concerns about policy changes leading to inflation, while Republicans expect a slowdown in inflation under the next president. Despite these findings, interpreting survey results becomes challenging due to their connection with partisan attitudes.
Source: https://www.axios.com/2024/12/06/trump-economy-democrats-republicans-inflation