Consumers express positive economic expectations following the victory of Donald Trump, in the University of Michigan Survey of Consumers.
While the surge in confidence ended by mid-December, it nonetheless led to the highest level of the Sentiment Index since January 2004, according to the University of Michigan researchers.
An all-time record number of consumers mentioned the expected favorable impact of Trump’s policies on the economy.
Consumers anticipated that a stronger economy would create more jobs, although expected wage gains were small.
Consumers held the most favorable personal financial outlook of the past ten years. An improved financial situation during the year ahead was expected by 40 percent of all consumers in December, the highest level since 2006. The gains were largely due to recent income increases, which were also the most positive since 2006. Expected annual income growth retreated to 1.5 percent from 1.8 percent last month. The smaller expected income gains were offset by declines in inflation expectations, which fell to the lowest levels since the Great Recession.