Tags: Confidence | Obama | Economy | gallup

Gallup: Confidence in Obama, Economy Waning

Wednesday, 13 June 2012 12:55 PM EDT

Confidence in the U.S. economy may be waning due to a sluggish jobs market, which bodes poorly for President Barack Obama, Gallup polling data show.

Americans' confidence in the economy slipped last week due to recent dismal May jobs report released by the Bureau of Labor Statistics.

Gallup's Economic Confidence Index came minus-20 for the week ending June 10, down from minus-18 the prior week and a four-year best minus-16 the week before that.

Editor's Note: The Final Turning Predicted for America. See Proof.

"Gallup's measure of economic confidence recently leveled off after months of steady improvement, and now appears to be retreating a bit. This mirrors the trend in the U.S. employment situation as reported by the U.S. Bureau of Labor Statistics," Gallup says.

In its latest jobs report, the Bureau of Labor Statistics reported the economy added a net 69,000 nonfarm payrolls to the economy in May.

By comparison, January and February added 275,000 and 259,000 net jobs, respectively.

"With the U.S. economy fragile and concerns over European debt continuing to mount, economic confidence will be an important number to watch in the coming weeks and months leading up to the presidential election," Gallup adds.

"The continued negative confidence among independents is particularly relevant to President Obama's re-election hopes. Given that independents are the swing U.S. political group, confidence among them may need to move closer to positive territory to boost their willingness to back Obama in the election."

Other indices are reporting similar findings.

The Conference Board, an industry group, reports that its widely-watched index of consumer attitudes fell to 64.9 in May from a downwardly revised 68.7 in April.

"Consumers were less positive about current business and labor market conditions, and they were more pessimistic about the short-term outlook," Lynn Franco, Director of Economic Indicators at The Conference Board, says in a statement.

"However, consumers were more upbeat about their income prospects, which should help sustain spending. Taken together, the retreat in the Present Situation Index and softening in consumer expectations suggest that the pace of economic growth in the months ahead may moderate."

On top of dreary jobs numbers, uncertainty stemming for the European debt crisis is hampering consumer sentiment as well.

"I would expect confidence will remain under pressure as long as negative headlines from Europe persist, which should weigh on confidence in the coming months," says Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York, according to Reuters

"This will call into question the efficacy of the U.S. recovery."

Editor's Note: The Final Turning Predicted for America. See Proof.

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Wednesday, 13 June 2012 12:55 PM
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