According To Democrats, Current Economic Conditions Have Never (Ever) Been Worse

Consumer confidence data from the University of Michigan showed an impressive (and surprising) rebound in preliminary December data with the headline print rising from near record lows at 51.0 to 53.3 (well above the 52.0 exp)…

Source: Bloomberg

This month’s increase was concentrated primarily among younger consumers. Overall, while views of current conditions were little changed, expectations improved, led by a 13% rise in expected personal finances, with improvements visible across age, income, education, and political affiliation.

Labor market expectations improved – 63% of consumers expect unemployment to rise in the year ahead, still much higher than the 40% seen a year ago, according to Surveys of Consumers Director Joanne Hsu.

After UMich respondents proclaimed their fear of losing their jobs last month was as high as during the peak of COVID and the GFC, this month saw those fears collapse…

Source: Bloomberg

Most notably, reality is finally starting to hit for the Democrats who were fearmongered into believing inflation would explode under Trump.

Year-ahead inflation expectations decreased from 4.5% last month to 4.1% this month, the lowest reading since January 2025. This marks four consecutive months of declines. Additionally, long-run inflation expectations softened from 3.4% last month to 3.2% in December, matching the January 2025 reading

Source: Bloomberg

Independents saw long-term inflation expectations plunge…

Source: UMich

But it was the Democrats that really came to their senses…

Source: Bloomberg

Simply put, UMich’s Hsu is forced to admit that consumers have noted that the soaring inflation they feared in April and May 2025 at the height of tariff developments has not come to fruition at this time.

Hsu couldn’t help but play down the improvements with her concluding remarks: 

“Consumers see modest improvements from November on a few dimensions, but the overall tenor of views is broadly somber, as consumers continue to cite the burden of high prices.”

Finally, according to UMich Democratic respondents, current conditions sentiment has never been worse…ever… and the gap between Republican and Democrat confidence has never been wider…

But, no bias, right?