President-elect Donald Trump’s victory continued to increase consumer confidence in December, according a University of Michigan survey.
The monthly consumer sentiment index increased to 98.2, the highest level since January 2004, from a preliminary reading of 98.
However, the index’s improvement slowed compared to the immediate post-election jump in November and early December, suggesting that the honeymoon enthusiasm may be fading.
“An all-time record number of consumers (18%) spontaneously mentioned the expected favorable impact of Trump’s policies on the economy,” said Richard Curtin, the survey’s chief economist. “This was twice as high as the prior peak (9%) recorded in 1981 when Reagan took office.”
Curtin said nearly as many consumers were pessimistic on the economy, but they were less than half as frequent as the previous record number of bearish responses.
Consumers were confident about jobs growth but less optimistic about rising wages.
Last month, the only groups of people that weren’t more confident were those with a college degree and residents of the Northeast, according to the survey.
Gauges of consumer and business sentiment have jumped since the election, as the end of the tense campaign trail brought relief. While improving sentiment is encouraging, it doesn’t mean an economic boom is right around the corner. Real data on the US economy that has come out since the election hasn’t blown the roof off of expectations. Economists warn that the confidence will only be sustained if the next administration produces real results.