US consumer sentiment rises slightly on Democratic optimism over Harris’ presidential prospects

WASHINGTON (AP) — A surge in optimism by Democrats over the prospects of Vice President Kamala Harris lifted U.S. consumer sentiment slightly this month.

The University of Michigan’s consumer sentiment index edged up to 67.8 after coming in at 66.4 in July. Americans’ expectations for the future rose, while their assessment of current economic conditions sank slightly.

The spirits of Democrats and political independents rose. Republicans’ sentiment fell. The survey found that 41% of consumers considered Harris the better candidate for the economy, versus the 38% who chose Republican nominee Donald Trump. Before President Joe Biden dropped out of the presidential race and gave way to Harris, Trump held an advantage on the issue.

The Michigan index has rebounded after bottoming out at 50 in June 2022 when inflation hit a four-decade high. But it remains well below healthy levels. Before COVID-19 hit the economy in early 2020 — causing a recession followed by an unexpectedly strong recovery that unleashed inflation — the Michigan index regularly registered in the 90s and occasionally crossed 100.

“Consumers are still pretty glum overall by historical standards, but sentiment is on an improving trend,’' said Carl Weinberg, chief economist at High Frequency Economics.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«RELATED COVERAGE» data-gtm-topic=«No Value» data-show-loadmore=«true» data-gtm-modulestyle=«List B»> <bsp-custom-headline custom-headline=«div»> RELATED COVERAGE </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> They look like — and link to — real news articles. But they’re actually ads from the Harris campaign </bsp-custom-headline> <bsp-custom-headline