Consumer Sentiment Dragged Down By Democrat Panic and Inflation FearsJohn Carney 24 Jan 2025
Consumer sentiment fell in January for the first time in six months, with inflation concerns and a sharp drop in perceptions of current conditions among Democratic voters driving the decline.
The University of Michigan’s sentiment index dropped to 71.1, its lowest in three months, from 74 in December. The decline was more pronounced than preliminary data suggested, underscoring growing unease about the economy’s trajectory.
Consumers reported feeling better about their personal finances and said incomes were stronger. But assessments of business conditions, the labor market, and economic growth slumped.
“While assessments of personal finances inched up for the fifth consecutive month, all other index components pulled back,” the director of the survey, Joanne Hsu, said in a statement.
Democratic sentiment plunged to 63.8 from 69.6, with current economic conditions dropping sharply to 86.9 from 98.9. Expectations among Democrats fell to 48.9, down from 50.8 in December and a dramatic fall from October’s 93.1. That 47 percent decline cannot be explained by actual changes in current economic conditions. Instead, it largely reflects Democrats being unhappy with the outcome of the presidential election.
Republican sentiment, by contrast, ticked up slightly to 86.0 from 85.4, bolstered by improving views of current conditions, which rose to 57.5 from 52.0. Expectations among Republicans eased to 104.4 from 106.8. Independents saw mixed results, with overall sentiment falling to 67.9 from 70.2, driving by a decline in expectations to 64.4 from 69.5 that was somewhat offset by an improvement in the current conditions gauge to 73.3 from 71.4.
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https://www.breitbart.com/economy/2025/01/24/consumer-sentiment-dragged-down-by-democrat-panic-and-inflation-fears/
