Confidence in US economy eases in early November

US consumer confidence eased in early November as economic gloom among supporters of John Kerry's democratic presidential bid overwhelmed more upbeat republicans, according to a survey released on Tuesday. Investor's Business Daily and TechnoMetrica Market Intelligence said their economic optimism index eased in November to 55.1 from 57.5 in October. A reading above 50 indicates optimism.
"(US President George W.) Bush's victory has engendered a strong positive reaction among his supporters, who by and large registered more optimism this month compared to October," said Raghavan Mayur, president of TIPP, a unit of TechnoMetrica Market Intelligence.
"On the other hand, those who were more likely to support Kerry in this year's election are more pessimistic about the economy, bringing the overall index down," Mayur said.
The six-month economic outlook, a measure of how consumers feel about the economy's prospects in the next six months, fell 4.4 points to 52.9, a 7.7 percent loss.
The gauge is based on over 900 interviews in the first week of November.
The index's personal financial outlook, a measure of how Americans feel about their own finances in the next six months, fell 3.7 points, or 5.8 percent, to 59.7.
Confidence in federal economic policies, a measure of views on how government economic policies are working, gained 1.0 point, or 1.9 percent, to reach 52.7.
Republicans saw the greatest increase in optimism, rising 3.5 points to the index's highest overall score of 75.8, while Democrats saw a steep 9.5-point drop in optimism, making them the most pessimistic group tracked by TIPP at 38.7.
Groups with a strongly optimistic outlook include young Americans aged 18-24, suburbanites, and those with household incomes over $75,000, according to TIPP.
Others at the pessimistic end of the scale were blacks, Hispanics and those earning under $30,000 per year.
The results did not reflect last Friday's release of strong hiring numbers for October, said Terry Jones, associate editor of Investor's Business Daily.