Consumers and businesses have been uncertain about the election for months, which has weighed on several economic indicators. Now that Election Day has arrived, economists expect consumer and business confidence to improve.

The widely followed Michigan Consumer Confidence Index is just one of many economic surveys in which respondents say the upcoming election will impact their economic expectations. According to several surveys, many consumers and businesses say they are waiting until after the election before making long-term plans for the coming year.

“The upcoming election weighs heavily on consumer expectations,” Joanne Hsu, director of consumer surveys at the University of Michigan, said in the latest results. “Regardless of who ultimately wins, a significant portion of consumers will likely update their economic expectations based on the election results. »

And consumers aren’t the only ones worried about the election’s conclusion. Purchasing Managers’ Index (PMI) Surveys also show that business leaders are waiting for election results before finalizing their long-term plans.

“There are concerns about the economy, and it feels like many people are waiting to see what direction the November election takes before making a solid plan for 2025 and beyond,” one comment said anonymous of a company in the country. Supply Management Institute September PMI report.

Companies also report a pause in financial decisions

Economists aren’t the only ones noticing a pause in making major financial decisions. Some companies reported slowing sales during earnings calls as buyers wait before making big spending decisions.

An example is Whirlpool (WHR), the manufacturer of household appliances like washers, dryers and ovens. The company reported a decline in sales in its most recent quarter, which executives attributed in part to election anxiety.

“Consumer sentiment ahead of the election is just not good,” Whirlpool CEO Marc Bitzer said during an earnings conference call in October. “We saw a similar trend in the last election and previous elections. Anyone living in the United States is exposed to negative news and messages on a daily basis, and that doesn’t improve consumer confidence.

Is this normal?

According to Wells Fargo economists, election cycles often shake consumer confidence. However, economists expect consumer and business confidence measures to rebound once the election is determined.

“It is not unusual to see confidence plummet ahead of a presidential election as the fate of the White House hangs in the balance and weighs on household optimism,” wrote Tim Quinlan, Shannon Seery Grein and Jeremiah Kohl , economists at Wells Fargo. “A quick look at past election cycles suggests that there is an increase in confidence following an election against a backdrop of certainty of outcome, regardless of which political affiliation wins power. »

Whirlpool’s Bitzer said he expects consumers to start spending again once the election is decided.

“The good news is that in previous elections we saw a fairly rapid recovery in consumer confidence once the election was over, regardless of the outcome,” he said.