Consumer confidence jumped more than forecast this month as Americans expressed the sunniest picture of their financial situation in 11 years, extending a boost following Donald Trump’s election victory.
The University of Michigan said Friday that its preliminary index of sentiment rose to 98, the highest since January 2015, from 93.8 in November. The median projection in a Bloomberg survey called for 94.5. The current conditions index, which measures Americans’ perceptions of their personal finances, increased by 4.8 points to 112.1, the highest since 2005.
A record share of respondents “spontaneously mentioned” the positive impact from new policies, according to the survey, with more people expecting the economy and job market to strengthen in the coming year. At the same time, recent gains in confidence could prove temporary unless economic conditions improve under the new administration.
“President-elect Trump must provide early evidence of positive economic growth as well as act to keep positive consumer expectations aligned with performance,” Richard Curtin, director of the Michigan survey, said in a statement. “Either too-slow growth or too-high expectations represent barriers to maintaining high levels of consumer confidence.”
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