Positive Momentum in Economic Confidence

A recent report released by Gallup Economy indicates that Americans' confidence in the US economy is the highest it has been in four years.  The monthly average of economic confidence in November (-13) is significantly improved from confidence levels recorded during the onset of the Great Recession in January 2008 (-32).  Throughout the month of November, Economic Confidence was relatively stable, ranging from a high (-10) in the week leading up to the presidential election and dropping slightly toward the end of the month (-15) as the fiscal cliff approaches.

The Gallop Economic Confidence Index determines monthly averages of economic confidence by averaging Americans' interpretation of current economic conditions and their future expectations for the US economy. Although in November more Americans viewed the economy as "poor" (38%) than "excellent" or "good" (17%) and the net score of Americans' opinions of the current US economy was negative (-11), the average rating of the current US economic conditions in November was the highest it had been since March 2008 (-20).  Additionally, while more Americans believe that the US economy is getting worse (50%) rather than better (45%) for an economic outlook net score of (-5), the economic outlook score is steadily improving.   Therefore, while Americans' assessment of the current economy and their economic outlook is bleak, it is the best it has been nearly five years.

Certain subgroups of the American population are more confident in the US economy.  Notably, Democrat (30), Black (30), Hispanic (6), and 18-29 year old (3) Americans reported the highest levels of confidence in the US economy, whereas married (-20), elderly  (-23) White (-23) and Republican (-59) Americans expressed the least confidence in the US economy.

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