Dems Lose Faith As UMich Sentiment Expectations Dip In October

The final data for the UMich Sentiment survey in October showed a significant improvement, with a reading of 70.5, surpassing expectations and the preliminary print. Both current conditions and expectations sub-indexes increased from their flash prints, although expectations slightly decreased on a month-over-month basis. Inflation expectations dropped to 2.7%, aligning with the general trend from the Conference Board's inflation expectations. The upcoming election greatly influences consumer expectations, with the share of consumers expecting a Harris presidency decreasing from 63% to 57% in October. Sentiment among Republicans rose 8% due to growing confidence in a Trump presidency, while sentiment among Democrats fell 1%. Independents saw a 4% gain in sentiment. Regardless of the election's outcome, many consumers will likely adjust their economic expectations based on the results.