The long-running U.S. primary process could be weighing on consumer confidence, suggests a report from Lévis, Que.-based Desjardins Group published on Wednesday.
U.S. consumer confidence indices fell in April, the report notes, despite improvements in jobless numbers, rebounding stock markets, and low gas prices.
“An election campaign does not always mean worsening confidence, at least not this far ahead of the vote. However, the candidates that are now in the lead seem to be exacerbating some distrust, which is adding to the existing distrust of the political class in general,” the report says, adding that Donald Trump and Hillary Clinton, the putative nominees, “are getting record levels of unfavourable opinions in the polls.”
“The weak confidence is reflected in modest consumption growth in the first quarter,” the report concludes. “It remains to be seen whether the rest of the election campaign will have negative repercussions on the economic climate. This is a risk to watch.”
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