Hassett Calls Higher Consumer Spending a Sign of Economic Optimism

Hassett told host Maria Bartiromo that credit card data showed people spending more on gasoline and other goods, which he said meant they remained “very, very optimistic” about the economy. It was the second time in a month he had cited increased spending as evidence of economic strength.

The latest University of Michigan Surveys of Consumers recorded the lowest sentiment reading in the survey’s history, with concerns about the cost of living a primary driver. Gallup reported that economic confidence had fallen to its lowest point since October 2022: 16% of Americans rated the economy excellent or good, while nearly half called it poor.

Asked about the figures, Hassett said the Michigan measure was “just a political survey.” He argued that Democrats’ and independents’ responses were almost perfectly correlated, and said the term “consumer sentiment” no longer meant what its users thought it did. However, surveys during Joe Biden’s presidency also found independents assessing the economy more negatively than Democrats, alongside Republicans.

Polling averages calculated by elections analyst Nate Silver put Donald Trump’s approval rating on his handling of the economy at 34%, with 63% disapproving. On inflation, 28% approve of Trump’s handling and 69% disapprove.