US consumer sentiment picks up, current account deficit at 52.9%

US stocks turned lower in volatile trading as worries about rising coronavirus cases and a patchy economic recovery dampened risk sentiment

US consumer sentiment increased in early September, with Democrats more upbeat about the economy’s outlook compared to Republicans ahead of the Nov. 3 presidential election.

The survey from the University of Michigan on Friday, however, showed President Donald Trump, a Republican, and his Democratic Party challenger, former Vice President Joe Biden, in “a virtual tie” when assessing consumers’ responses between July and September on which candidate they thought would win the election, not whom they favored or how they intended to vote.

“The September gains were primarily in the outlook for the economy, and it was Democrats that posted gains in economic prospects while optimism about the economy weakened among Republicans,” the University of Michigan Surveys of Consumers chief economist Richard Curtin said in a statement.

The University of Michigan’s consumer sentiment index rose to 78.9 in the first half of this month from a final reading of 74.1 in August. The index remains 22.1 points below February’s level. Economists polled by Reuters had forecast the index edging up to a reading of 75 in early September.

Though consumers believed Trump would be better for the economy, 40% did not expect either candidate would have an impact on their personal finances.