Consumer confidence is at a 12-year high, according to new data from the University of Michigan (UMHS). Donald Trump‘s unexpected election win is a contributing factor. On Friday, UMHS released a preliminary report on consumer confidence, which indicated that Americans are very optimistic.
Data showed that the index climbed to 98.0, which is 0.1 below the measure’s peak about a year ago. The survey also revealed that consumer confidence is at a 12-year high. The reason for this rise of positivity vis-à-vis the economy is the billionaire and Twitter aficionado.
The majority of those surveyed said that they are hopeful that the real estate mogul will keep his campaign promises, be the best jobs president ever, and will boost the American economy like no one else. Since winning the election, Trump has made all the right moves to make businesses, Wall Street, and some workers happy.
He was successfully able to negotiate a return of hundreds of jobs with Carrier. Trump claimed his Carrier deal will save “over 1100” jobs. Mr. Trump has stated after a meeting with Japan’s SoftBank that they have agreed to invest $50 billion in the U.S. and will create over 50,000 jobs.
Other moves that make some consumers ecstatic is Trump lashing out against union leader Chuck Jones and naming many former and current Wall Street heads to his cabinet. Experts from other agencies have also noted a spike in confidence.
According to the Conference Board’s monthly report, consumer confidence measure also rose to a 9-year high in July. Reports stated:
“Other recent readings on the health of the consumer have also been positive, with the second estimate of third-quarter GDP showing personal consumption rose 2.8% during the quarter, more than initially reported. The Conference Board’s consumer confidence measure also rose to a 9-year high in July. Consumer spending accounts for about 70% of GDP.”
Richard Curtin, chief economist for the survey of consumers, said:
“The surge was largely due to consumers’ initial reactions to Trump’s surprise victory.”
“When asked what news they had heard of recent economic developments, more consumers spontaneously mentioned the expected positive impact of new economic policies than ever before recorded in the long history of the surveys.”
Under President Barack Obama, positive economic numbers were often met with a heavy dose of skepticism on the other side. It will be interesting to see if this will change with the new regime.