U.S. Consumer Sentiment Signals Gains in Spending Remain Likely
The reflection of a shopper is seen on a window as shoes are displayed for sale on Steinway Street in the Queens borough of New York.
Photographer: Mark Kauzlarich/BloombergU.S. consumer sentiment holding near post-election highs reflects an improved outlook on wages and indicates spending is poised to rebound, though a partisan gap persists, University of Michigan survey data showed Friday.
Despite the political controversies engulfing the White House, favorable views on President Donald Trump’s economic policies continue to buoy consumer sentiment, especially among members of his party. Notably, 79 percent of Republicans expect the economy to continue expanding while 66 percent of Democrats anticipate a recession over the next five years. While overall expectations of income gains in the year ahead increased to 2 percent from 1.6 percent, the boost in confidence hasn’t yet fueled a major uptick in economic activity.