As consumer sentiment sinks, Republicans even more pessimistic, survey shows

Consumer sentiment is at an all-time low, but Republicans’ sentiments are deeply in the red, according to data broken out by the University of Michigan.

The Michigan consumer sentiment fell sharply to a record low of 50.2 in June, well below market forecasts of 58, researchers said. All indicators are at their lowest since May 1980, during a time of double-digit inflation.

The current economic conditions subindex sank to an all-time low of 55.4, down from 63.3 in May, according to the university.

Personal financial situations worse

Consumers' assessments of their personal financial situation worsened about 20%, with 46% of consumers attributing their negative views to inflation, the biggest share since 1981.

Even though the pessimism spread across party lines, Republicans were particularly sour on the economy, according to a data breakout.

In June 1980, when President Jimmy Carter struggled with inflation and the economy, along with dismally low approval ratings, the index of consumer sentiment, which focuses on consumers’ own situation, was 55.1 for Republicans, 59.2 for Democrats and 60.3 for independents.

The 1980 number for Republicans and Democrats marked the low for the next 40 years, until the 2020 crash. This June, those numbers split deeply between the parties, with Democrats at 66.4 and Republicans at 33, which is 10 points lower than lowest low during the pandemic. Independents rated 48.5.

The index for current economic conditions in June 1980 was 67 for Democrats, 72.5 for independents and 61.5 for Republicans. This June the index was 64.4 for Democrats, 56 for independents and 38.1 for Republicans.

The split was even deeper for the future in the index of consumer expectations. In June 1980, it was 54.2 for Democrats, 52.4 for independents and 51.1 for Republicans. This June it was 67.7 for Democrats, 43.7 for independents and 29.7 for Republicans.

Steven A. Morelli is a contributing editor for InsuranceNewsNet. He has more than 25 years of experience as a reporter and editor for newspapers and magazines. He was also vice president of communications for an insurance agents’ association. Steve can be reached at stevenamorelli@gmail.com.

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Steven A. Morelli is a contributing editor for InsuranceNewsNet. He has more than 25 years of experience as a reporter and editor for newspapers and magazines. He was also vice president of communications for an insurance agents’ association. Steve can be reached at steve@innemail.com.