Partisan attitudes toward economy creates ’substantial economic uncertainty’

Consumer attitudes and expectations are harshly divided along partisan lines, and the divide is wide enough to generate substantial economic uncertainty, according to a special report released by the University of Michigan. Joanne Hsu , director of U-M's Surveys of Consumers, and the surveys research team investigated how partisan differences have evolved through the post-COVID inflationary episode and leading into the upcoming election season. They found that partisan gaps in attitudes toward the economy outpaces gaps by income, age and education. "This suggests that the way consumers interpret ongoing economic trends continues to be colored by partisan perspectives,- said Hsu, also a research associate professor at the Institute for Social Research's Survey Research Center. "The size of the partisan divide in expectations has completely dominated rational assessments of ongoing economic trends. This situation is likely to encourage poor decisions by consumers and policymakers alike. While there have always been partisan differences in preferred policies, the overwhelming size and persistence of the partisan gap has generated substantial economic uncertainty.