Consumer confidence soars after Trump win as retailers prepare for a post-election spending boom

It was of the most divisive and contentious election battles in US history.

But it appears the majority of America has made peace with Donald Trump’s shock win as consumer confidence soars post-election.

Retails are bracing themselves for a big holiday rush this year as the public appear optimistic about the future of the U.S. economy under president-elect Trump.

The consumer confidence rose by 8.4 points from October to 85.2 in November – the biggest gain within a month since December 2011, according to he University of Michigan’s final reading of consumer sentiment for November.

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The consumer expectations index of the survey rose by 8.4 points from October to 85.2 - the biggest gain within a month since December 2011, according to he University of Michigan's final reading of consumer sentiment for November 

The consumer expectations index of the survey rose by 8.4 points from October to 85.2 – the biggest gain within a month since December 2011, according to he University of Michigan’s final reading of consumer sentiment for November 

‘The upsurge in favorable economic prospects is not surprising given [Donald] 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,’ Richard Curtin, University of Michigan Surveys of Consumers chief economist told Bloomberg.

With increased confidence in job security, wage growth and soaring markets, shoppers are planning to spend, spend, spend over the holidays.

The National Retail Federation estimates holiday sales will grow 3.7 per cent on last year – bringing a $630.05 billion boon to the economy.

‘You will see a bump in spending this year because this election was so close, so highly contested, and so dramatic no matter which candidate you supported,’ Marshal Cohen, retail analyst with NPD Group, told Business Insider.

The predictions are in line with results of a recent survey by ForeSee that revealed most Americans are planning to spend the same or more during the holiday season than in the run up to the election. 

Consumers are planning to spend more this holiday season than in the past decade

Consumers are planning to spend more this holiday season than in the past decade

Retails are bracing themselves for a big holiday rush this year as the public appear optimistic about the future of the U.S. economy under president-elect Trump.

Retails are bracing themselves for a big holiday rush this year as the public appear optimistic about the future of the U.S. economy under president-elect Trump.

While it could be expected that Trump supporters would be driving the spending frenzy on a wave of optimism after their candidate won, the survey reveals that twenty per cent of Democrats plan to spend more in the coming weeks – perhaps trying to shop away their misery after Hillary Clinton lost to Trump.

That is double the percentage of Republicans, ten per cent, who plan to up their spending.

Cohen added: ‘Half the country is going to be happy, so they are going to go out and spend, and half is going to be very distraught and disturbed – and one way to get out of that slump is to distract themselves by going to stores.’

With so much air time dedicated to the election over the past year, retailers will also get the chance to air their holiday advertising.

With so much air time dedicated to the election over the past year, retailers will also get the chance to air their holiday advertising.

It appears the majority of America has made peace with Donald Trump's shock win as consumer confidence soars post-election

It appears the majority of America has made peace with Donald Trump’s shock win as consumer confidence soars post-election

Cohen added: ‘Half the country is going to be happy, so they are going to go out and spend, and half is going to be very distraught and disturbed – and one way to get out of that slump is to distract themselves by going to stores

Meanwhile, shoppers who had been holding back over concerns about what the results could mean to the economy have been pleasantly surprised.

After volatile trading in the lead up to the election, stocks ended last week with the biggest gains in years. 

The Dow Jones Industrial Average was up 5.4 percent – its biggest one-week jump since December 2011.

Big department stores, such as Macy’s and Khol’s are expecting a strong holiday spending period. 

‘Things that are distracting like the election, once there’s an outcome, certainty is a good thing,’ Kohl CEO, Kevin Mansell said. ‘So from a positive perspective, having certainty on that is probably a good thing looking into the holiday.’

The National Retail Federation has predicted a 3.6 percent growth in holiday sales – following a three percent growth in the previous holiday period.

‘With the holiday season upon us, retailers are glad that this unprecedented election is over, along with the divisive rhetoric and the impact it had on consumers concerned about their future,’ NRF President and CEO Matthew Shay said.

‘The next few months will offer many opportunities for us to educate lawmakers on our priorities,’ Shay said, citing tax reform and infrastructure improvement and pro-growth policies that create jobs and reward investment. ‘If this election taught us anything, it is the importance of focusing on policies and programs that not only benefit today’s economy but the economy of the future.’

Trump, a billionaire businessman turned politician, has pledged to make it easier for big businesses and retailers to stay in the United States such as offering lower tax rates for companies.

His pledges have convicted almost half of respondents that the U.S. will have ‘continuous good times’ over the next year – up 11 percent from October during the final leg of the election race.

Those who expected ‘bad times’ fell by 7 percentage points to 37 percent.