On Friday a survey showed that in August, U.S. consumer sentiment was higher due to developments in the race for the White House, while inflation expectations stayed the same over the next year and beyond.
The preliminary reading by the University of Michigan on the overall index of consumer sentiment this month came in at 67.8, compared to July’s final reading of 66.4. Economists had expected a preliminary reading of 66.9.
In terms of the U.S. presidential election on November 5, the survey said that sentiment for those who identified as Democrats rose 6%, the first rise since March, after President Joe Biden’s decision to step down from the race and Vice President Kamala Harris emerged as the party’s presidential nominee.
For Republicans, sentiment in August declined 5% to the lowest level since November last year. Sentiment among those who self-identified as independents, whose views of the economy thus far this year have aligned more closely with the sour view of Republicans, lifted 3%, the first rise since Jan.
The survey was the first conducted outside the period when Biden withdrew from the race on July 21 and showed that 41% of consumers saw Harris as the better candidate for the economy, while 38% preferred Donald Trump. Trump held a five-point advantage over Biden on the economy between May and July.
