Economic Confidence Improves Slightly in Past Week

Economic Confidence Improves Slightly in Past Week
U.S. economic confidence rose slightly to -25 for the week ending July 22, from -27 the previous week, meaning Americans have a somewhat more positive outlook. Since mid-June, confidence has fallen into a narrow range between -23 and -27, after Gallup registered more positive readings in April, May, and early June. Nevertheless, Americans are more upbeat about the economy now than they were in late 2011 and early 2012.

Gallup's Economic Confidence Index consists of two measures -- one assessing current economic conditions and the other assessing the nation's economic outlook. Americans' economic outlook and views of current economic conditions changed little last week. The -22 economic outlook rating reflects a one-percentage-point increase over the previous week, with 36% of Americans saying the economy is getting better and 58% saying it is getting worse. Fourteen percent of Americans say the economy is excellent or good, while 42% consider it poor, resulting in a -28 current conditions rating.

Confidence improved among both Democrats and Republicans last week, while perceptions among independents declined. The increase among Republicans marks the first time in six weeks that confidence improved among this group.

Still, economic perceptions remain sharply divided among party lines, with Democrats having a net positive view of the economy and Republicans a highly negative one.

Implications

Although Americans' economic confidence improved slightly last week, it remains to be seen if it can maintain positive momentum in the weeks to come, and climb any higher than the range near -25 at which it has been hovering for the last month. The nation's unemployment rate will likely be key to improving economic confidence. However, Gallup's employment data show little has improved on that front in early July, suggesting the U.S. Bureau of Labor Statistics will likely report another month of no improvement when it releases its jobs report in early August. Thus, unless other economic measures show definite signs of an improving economy, it is unlikely that Americans' confidence in the economy will improve much in the short term.
From: http://www.gallup.com
Updated: July 24, 2012