U.S. consumer sentiment dropped to 77 early this month, down from October’s 81.8, and below the expected 82, according to the University of Michigan Surveys of Consumers press release. The fall in consumer sentiment was fueled by the outcome of the presidential election and resurgence of COVID-19 infections and deaths.
- There was a negative shift in consumer sentiments among Republicans with no record gain among the Democrats following the presidential election
- 59% Democrats said their normal life has greatly changed due to the coronavirus, compared to 34% Republicans
- The gap in expectations between Democrats and Republicans closed somewhat due to the coronavirus and the partisan shift in expectations that started before the election
- The partisan gap is likely to enlarge, but the gains will be limited until a potential vaccine is approved and widely distributed
U.S stocks are gaining. SPY is up 0.68%, QQQ: NASDAQ is up 0.16%