Consumer Sentiment:  Rebound with Election

Bottom Line: Consumer sentiment rebounded sharply following the election with the University of Michigan reporting that the initial reaction of consumers "was to express greater optimism about their personal finances as well as improved prospects for the national economy". There was substantial volatility in this survey leading up to the election. With this gain, which was widespread across income and age subgroups, as well as geography, consumers' assessments of both expectations and current conditions are modestly above their year ago levels. Consumer Sentiment was REVISED UP by 2.2 points in late November to 93.8%, compared with market expectations for no change to 91.6%. Sentiment has improved by 4.0 points over the past 3 months. With this month's moderate increase, compared to October's final level of 87.2%, sentiment is 2.7% ABOVE its year ago level. Current Conditions were REVISED UP by 1.8 points to 107.3%. Current conditions are now 2.9% ABOVE their year ago level. Consumer Expectations were REVISED UP by 8.6 points to 85.2%. With this month's sharp increase, compared to October's final level of 76.8%, expectations are 2.8% ABOVE their year ago level.