Post-election optimism drives US consumer confidence to 16-month high
US consumer confidence rose in November on labor market optimism and a stock market rally
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LIFESTYLE Economy
US consumer confidence surged to a 16-month high in November, driven by optimism about the labor market, expectations of lower inflation, and rising stock prices.
The second consecutive monthly increase, reported by the Conference Board on November 26, was partly attributed to the US election results, which secured Donald Trump's reelection and Republican control of Congress.
"The increase in the headline likely was driven by euphoria among Republicans," said Samuel Tombs, chief US economist at Pantheon Macroeconomics. "The index also jumped in late 2016, when Mr. Trump was elected for the first time, suggesting that the sample of households in the Conference Board survey leans more Republican than the population at large."
Among the top concerns for consumers, inflation makes everyday expenses more expensive. As inflation rises, purchasing power decreases over time, meaning you get less while paying more. Inflation is influenced by a wide range of factors, and a president's actions can certainly play a role. From tax cuts to wars and government aid, the president decides how to respond to high inflation or stimulate the economy during a slowdown.
To discover the yearly inflation rate by US president, check out the following slides.
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