Tags: Gallup | Economic | Confidence | Sentiment

Gallup Economic Confidence Index Slips as Dismal Sentiment Lingers

By    |   Tuesday, 26 May 2015 01:06 PM

Americans' confidence in the economy remains depressed, slipping from the highs it had reached in the period between late December and April, according to the most recent Gallup economic confidence index.

Gallup's Economic Confidence Index dropped slightly to negative-7 for the week ending May 17. The index represents an average of two components. One measures Americans' views of current economic conditions and the other whether they believe the economy is getting better or worse. The highest score would be plus 100, and the lowest score minus 100.

“The biggest drop this year has been in Americans' views of the future of the economy, as they have moved from a very optimistic position at the end of 2014 and in the first part of this year to a much more negative forecast,” Gallup reported.

The poll found 25 percent of Americans thought the current economy is "excellent" or "good" and 29 percent see it as "poor." A total of 43 percent of Americans thought the economy is "getting better" and 53 percent said it is "getting worse."

“Confidence is also down further from its recent highs at the end of 2014 and beginning of 2015, but even the current scores are well above where they were from 2008-2014,” Gallup reported.

However, another survey found that consumer confidence rebounded slightly this month as the job market showed signs of improvement.

The Conference Board's consumer confidence index rose to 95.4 in May from 94.3 in April. Last month's reading had been sharp drop from March's 101.4. A year ago, the index stood at 82.2.

Higher home values, near-record stock prices and a stronger job market have helped stabilize confidence even in the face of rising gasoline prices, Bloomberg News reported. A sustained pickup in wage growth is probably needed to propel consumer spending after a first-quarter setback, Bloomberg reported.

“When I look at the confidence numbers, I’m seeing more strength than the current consumer spending numbers show,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York, told Bloomberg. “When you look at the backdrop for spending — not just confidence but also income and wealth — they’re all suggesting there should be more spending.”

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Americans' confidence in the economy remains depressed, slipping from the highs it had reached in the period between late December and April, according to the most recent Gallup economic confidence index.
Gallup, Economic, Confidence, Sentiment
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2015-06-26
Tuesday, 26 May 2015 01:06 PM
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