financetom
Economy
financetom
/
Economy
/
US political independents drift closer to Republicans' sour view of economy
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US political independents drift closer to Republicans' sour view of economy
May 24, 2024 2:43 PM

(Reuters) - U.S. political independents, who typically occupy the center ground in a closely watched monthly survey of overall consumer attitudes about the economy, have drifted closer this year to the dour views held by Republicans, a potential warning sign for Democrats hoping to hold onto the White House in the Nov. 5 presidential election.

In another indication of the difficulty President Joe Biden faces with voters on the economy - consistently ranked as the U.S. electorate's top concern ahead of the election - the University of Michigan's monthly consumer sentiment survey fell to a six-month low in May. Assessments of the current situation were the lowest in a year and household expectations were the weakest since December.

The breakdown by party not surprisingly shows Democrats - in control of the White House since January 2021 - notably more optimistic than Republicans, a partisan divide that has been routine since the survey began asking for respondents' political affiliations each month beginning at the start of Republican Donald Trump's presidency in 2017. When Trump was in office, it was Republicans who were persistently more optimistic.

Political independents, seen as a critical swing voting block who may well determine the winner in November, have typically hewed closely to the survey's overall score - until this year.

Sentiment among independents more often than not registers as slightly less optimistic about the economy regardless of which party is in power, but since January it has swung materially below the overall survey reading.

On both an absolute and percentage basis, the downside deviation in May - 6.6 index points or 9.6%, respectively - was the largest since the monthly readings have been published. Since January, independents have registered an average reading 5.1 points, or 6.7%, below the overall Consumer Sentiment Index compared with an average downside gap of 1.6 points, or 2.2%, since February 2017, when monthly readings began.

In fact, readings from independents in five of the last six months have been more than one standard deviation below the series average, indicating the gap is both materially outside the norm and persistent. Readings from two of the last three months have been more than two standard deviations below average.

A Reuters/IPSOS poll published on Tuesday showed Biden's overall approval rating this month fell to 36%, the lowest level in about two years.

The economy was picked by 23% of respondents as the most important problem facing the country, making it voters' top concern. Forty percent of respondents said Trump had better policies on the economy versus 30% who picked Biden, while the rest said they didn't know or didn't answer the question.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Fed's Daly says she backed latest rate cut, open to another one in December
Fed's Daly says she backed latest rate cut, open to another one in December
Nov 3, 2025
(Reuters) -San Francisco Federal Reserve President Mary Daly on Monday said she supported the U.S. central bank's interest rate cut last week, and will want to sift through incoming data to assess if another reduction in borrowing costs is warranted at the December 9-10 meeting. I thought it was appropriate to take another bit off the policy rate, she said...
No surprises seen in US debt issuance: T-Bills up, bonds steady
No surprises seen in US debt issuance: T-Bills up, bonds steady
Nov 3, 2025
NEW YORK (Reuters) -The U.S. Treasury is widely expected this week to announce its intention to keep note and bond auction sizes unchanged over the next 12 months, at least, as it likely continues to issue more bills and shorter-term debt to manage a sizable fiscal deficit. The Treasury will release its quarterly borrowing estimates on Monday at 3:00 p.m....
US manufacturing contracts further in October; supplier delivery times lengthen
US manufacturing contracts further in October; supplier delivery times lengthen
Nov 3, 2025
WASHINGTON (Reuters) -U.S. manufacturing contracted for an eighth straight month in October as new orders remained subdued, and suppliers were taking longer to deliver materials to factories against the backdrop of tariffs on imported goods. The Institute for Supply Management (ISM) said on Monday its manufacturing PMI fell to 48.7 last month from 49.1 in September. A reading below 50...
Fed's Goolsbee is on fence about need to cut rates in December
Fed's Goolsbee is on fence about need to cut rates in December
Nov 3, 2025
(Reuters) -Federal Reserve Bank of Chicago President Austan Goolsbee said on Monday he's in no hurry to cut interest rates again with inflation still too far above the central bank's 2% target.  I'm not decided going into the December meeting and my threshold for cutting is a little bit higher than it was at the last two meetings, Goolsbee said...
Copyright 2023-2026 - www.financetom.com All Rights Reserved