By Harriet Torry Early signs point to an uptick in consumer spending at the start of the year, particularly by lower- and middle-income households receiving payments through the most recent. | February 17, 2021
Over the last couple of weeks, we've heard much chatter about how Democrats are applying lessons learned from the 2009 stimulus package to crafting the $1.9T COVID relief plan. Overall, most Democrats agree that they didn't pump enough money into the economy, which meant a longer and less robust recovery.
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Consumer expectations stabilize despite partisan extremes
The Consumer Sentiment Index has shown only relatively small variations since the pandemic started, averaging 81.5 in 2020, marginally above January’s 79.0. Needless to say, Sentiment levels were well below the average of 97.0 from 2017 to 2019, according to the University of Michigan Surveys of Consumers.
The same relative stability at depressed COVID-19 levels was shown by the Expectations Index. Importantly, the level of these key confidence indicators remained well above prior cyclical lows despite the sudden and unparalleled collapse in economic activity.
Despite unyielding job and income disparities, as precautionary motives begin to ease, accumulated savings will spark a significant gain in spending in late 2021, said U-M economist Richard Curtin, director of the surveys.
Preliminary Results from University of Michigan surveys showed relatively small declines in sentiment given resurgence in pandemic and political unrest. The University of Michigan Index of Consumer Sentiment declined in January compared to December and January last year based upon preliminary results for the month. The Index of Consumer Sentiment stood at 79.2, a decline […]
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(Reuters) - U.S. consumer sentiment dipped in early January as Americans reacted to the assault on the U.S. Capitol and a relentless surge in COVID-19 infections and deaths, the University of Michigan said on Friday in a report that also showed a deep partisan divide in views on the economy and outlook.
FILE PHOTO: Diners eat lunch in outdoor seating at a restaurant in the Little Italy section of Manhattan on the first day of the phase two re-opening of businesses following the outbreak of the coronavirus disease (COVID-19) in New York City, New York, U.S., June 22, 2020. REUTERS/Mike Segar