Consumer confidence surged in early December thanks to expectations that President-elect Trump’s policies will boost the economy, according to a preliminary release of the University of Michigan consumer sentiment index Friday.
The index rose to just below the post-crisis high reached in 2015, which in turn was the highest since 2004, well before the financial crisis. The improvement “was largely due to consumers’ initial reactions to Trump’s surprise victory,” said Richard Curtin, the chief economist for the survey.
When asked what news about the economy they had heard, more respondents mentioned the positive impact of new economic policies than recorded ever before.
Trump has promised to accelerate economic growth by cutting taxes, reducing regulations, renegotiating trade deals and expanding energy production.
Those promises have raised the public’s expectations for his presidency, it appears. Curtin warned that he has elevated the risk of letting down consumers. “President-elect Trump must provide early evidence of positive economic growth as well as act to keep positive consumer expectations aligned with performance,” he said.
Of note, the only groups not to see a surge in optimism were college graduates and residents of the Northeast.
