Gallup: Americans’ Economic Confidence Highest Since 2008

Filed under: News,The Economy |

By ALYSSA BROWN, Gallup— Gallup’s U.S. Economic Confidence Index was -8 last week, matching the five-year weekly high set the week ending Feb. 3.

The current score is up from -13 the previous week.

Americans’ confidence in the economy steadily improved throughout the week, even before Friday, when the BLS report showing a decline in unemployment came out and the Dow Jones and S&P 500 hit record highs.

Gallup Daily tracking three-day rolling averages show that economic confidence reached -4 toward the end of last week — the highest three-day average since Gallup began Daily tracking in 2008.

The latest update, for May 3-5 polling, showed confidence dipping back down to -7.

Monthly U.S. economic confidence in April also matched the five-year monthly high of -13, tying February, January, and last November.

Economic confidence in April was up from -16 in March, with the budget sequester, which began March 1, likely affecting the March reading.

The recovery in April to the levels seen in January and February suggests the impact of the sequester may have been offset by the gains in stock values.

Upper-Income Americans’ Confidence Hits New Five-Year Monthly High

Upper-income Americans’ economic confidence in April pushed out of negative territory for the first time. Middle- and lower-income Americans’ economic confidence remained in negative territory at -16 in April, compared with -18 in March and -14 in February.

Gallup’s Economic Confidence Index last week matched the five-year weekly high and included the best three-day rolling average since Gallup began Daily tracking in 2008.

Economic confidence in April also tied the five-year monthly best, and upper-income Americans’ monthly confidence left negative territory for the first time in five years.

Americans’ confidence in the economy is off to a strong start in May, likely due to continued record stock values as well as the generally positive news coverage of the BLS jobs report.

The BLS report estimated a 7.5% April unemployment rate –a four-year low.

Furthermore, U.S. job creation has remained in higher territory, a majority of Americans are optimistic about home prices increasing in their local area, and self-reported consumer spending this year has increased modestly.

And, the majority of Americans are still not concerned about the impact of federal budget sequestration cuts on the country or their personal financial situation, which some experts feared would negatively affect Americans’ confidence in the economy.

Source: Gallup Economy

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