President-elect Donald Trump might be a controversial figure in American politics, but his upset victory in the 2016 presidential election hasn't hurt consumer confidence in the economy -- and might have even helped it.
According to the University of Michigan's monthly consumer sentiment index released on Nov. 23, there was a 6.6 point increase in consumer confidence, growing from 87.2 in October to 93.8 in November.
But the post-election difference had an even larger increase. The study measured consumer sentiment just before and after the election and found the consumer confidence level jumped 8.2 points.
“The upsurge in favorable economic prospects is not surprising given Trump’s populist policy views, and it was perhaps exaggerated by what most considered a surprising victory as well as by a widespread sense of relief that the election had finally ended,” the study stated.
The study concludes that if Trump doesn't satisfy some expectations people have for the economy, then he could quickly fall out of favor.
“Presidential honeymoons represent a period in which the promise of gains holds sway over actual economic conditions,” the study stated. “Presidential honeymoons, however, can quickly end if they are unaccompanied by prospects that economic conditions will actually improve in the future. President-elect Trump appears to appreciate the importance of his first hundred days; the key issue is whether his economic policies will resonate with the nation's consumers.”
But Richard Curtin, director of the University of Michigan study, said that although presidential “honeymoons” are usually short, Trump's might be even shorter.
“The honeymoon may be shorter than usual given the intensity of the opposition, although President-elect Trump has proven himself to be a skilled communicator,” Curtin said in a statement, according to Bloomberg.