Share

US consumer sentiment signals gains in spending

Washington - US 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 on Friday.

Highlights of Michigan sentiment

Sentiment index at 97.1 (forecast was 97.5) after 97 in April; preliminary reading was 97.7. Expectations measure improved to 87.7 from 87; preliminary reading was 88.1.

Current conditions gauge, which measures Americans’ perceptions of their personal finances, fell to 111.7 from 112.7 in the prior month and the preliminary reading

Key takeaways

Despite the political controversies engulfing the White House, favourable views on President Donald Trump’s economic policies continue to buoy consumer sentiment, especially among members of his party.

Notably, 79% of Republicans expect the economy to continue expanding while 66% of Democrats anticipate a recession over the next five years. While overall expectations of income gains in the year ahead increased to 2% from 1.6%, the boost in confidence hasn’t yet fueled a major uptick in economic activity.

Official’s views

“Since no major policies, such as healthcare, taxes, or infrastructure spending have yet been adopted, the partisan divide may reflect differences in policy preferences expressed as expected economic outcomes,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement.

“The extreme partisan divide may persist until passage is deemed either inevitable or impossible.”

Other details

• Among Republicans, 75% expect economic conditions to improve during the year, compared to 16% of Democrats.

• Consumers saw inflation rate in the next year at 2.6%, compared with 2.5% in the prior month.

• Inflation rate over next five to 10 years was unchanged from the previous month at 2.4%.

• Data on buying plans indicate light vehicle sales this year won’t increase much above the 2016 peak.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders