NEW YORK TIMES
Donald J. Trump won last week’s election in part by promising to fix an economy many voters believed was broken.
Republicans, at least, seem to believe him.
Consumer sentiment among Republicans has soared nearly 30 percent in the week since Election Day, according to data from Morning Consult, an online survey firm. Republicans, according to the survey, now feel better about the economy than at any time since Mr. Trump lost his bid for re-election four years ago.
Democrats, unsurprisingly, have had a very different reaction. Sentiment in that group has dropped 13 percent since Election Day, its lowest level since early 2023. For political independents, relatively little has changed in their attitudes toward the economy in recent days.
The big partisan shifts in Americans’ economic views are not a surprise. There have been similar swings after past presidential elections, although the trend has become more pronounced in recent decades. And voters have said for months that their economic expectations would depend partly on whether their preferred candidate won the White House.
“Consumers have been telling us all year long their expectation for the economy is contingent on the outcome of the election,” said Joanne Hsu, director of the University of Michigan’s long-running survey of consumer sentiment. She expects to see large partisan swings in that survey as well, she said, when data from after the election becomes available this month.
Measures of consumer sentiment have been depressed for much of President Biden’s time in office, though indicators such as the unemployment rate and wage growth have indicated a strong economy. In polls and interviews, Americans have cited inflation as one of the main sources of their dissatisfaction with Mr. Biden, even as inflation has cooled.
Economic sentiment has begun to improve in recent months, however, perhaps suggesting that more Americans are starting to see improvements in inflation in their daily lives — albeit too late to help Democrats in this month’s elections.
“Consumers probably are seeing and to some extent digesting some of the good economic news,” said Deni Koenhemsi, head of economic analysis for Morning Consult.
Ms. Koenhemsi noted that consumers’ expectations had improved more rapidly than their assessment of the economy’s current state. That suggests that many are still struggling with high prices but becoming more optimistic about the months ahead.
That gradual process isn’t surprising, said Neale Mahoney, a Stanford University economist who worked in Mr. Biden’s administration. In research published last year, Mr. Mahoney and a colleague found that it takes time for sentiment to adjust as inflation cools and people become used to the new, higher price of many goods and services.
“Even if measured inflation has decreased, the way people experience inflation, they may still be acclimatizing to the price increases that were most acute in summer of 2022 into 2023,” Mr. Mahoney said.
The election, he added, could accelerate that process, at least for Republicans, who might be more inclined to reset their expectations once their preferred candidate is in office.
