Economic Confidence Unchanged Last Week

Economic Confidence Unchanged Last Week
The Gallup Economic Confidence Index was -23 for the week ending July 8, unchanged from the week before but improved slightly from the dip to -26 in mid-June. Confidence deteriorated toward the end of the week, slipping from -19 in Gallup's continuous three-day rolling averages, after the Bureau of Labor Statistics released its June jobs report that showed little jobs growth and a flat unemployment rate.

Gallup's Economic Confidence Index consists of two measures -- one assessing current economic conditions and the other assessing the nation's economic outlook. Americans' attitudes about both were unchanged last week. The -18 economic outlook rating reflects 38% of Americans saying the economy is getting better and 56% saying it is getting worse. Fourteen percent of Americans say the economy is excellent or good, while 41% say it is poor, resulting in a -27 rating of current economic conditions.

Gap Between Democrats' and Republicans' Views Grows to Largest Yet

The gap between Democrats' and Republicans' views on the economy has widened considerably since the beginning of the year, most likely reflecting the intensifying presidential campaign. Democrats' Economic Confidence Index score of +13 last week compares with a score of -54 among Republicans -- reflecting the largest gap since Gallup began collecting economic confidence data in 2008. The current 67-percentage-point difference compares with a gap of 43 points for all of January. Independents' views remain negative at -30.

Implications

While economic confidence remained flat last week, the late-week dip on the heels of the June jobs report may signal future pessimism that could carry well into the month of July, much as it did in June after the sour May jobs report. On the other hand, President Obama asked Congress on Monday to extend the Bush-era tax cuts for families making less than $250,000 a year. This may come as welcome news for the majority of American households and could brighten public perceptions of the economy, or of Obama's willingness to spur its growth. It will be interesting to monitor the trends, both for Americans as a whole and within political parties, as voters continue to assess Obama's performance and the economy as the top factors affecting their presidential election preferences.
From: http://www.gallup.com
Updated: July 10, 2012