Economic mood highest in two years, but inflation concerns linger: Gallup

Americans are more confident in the U.S. economy than they have been in at least the past two years, according to a new survey.

However, further research shows that inflation remains a major concern for many people.

Latest Gallup Economic Confidence Index, Released on TuesdayThe outlook remains negative overall, but the outlook has improved over the past two months, reaching its highest point since January 2022, it found.

At the same time, Gallup’s probability-based panel found that 63 percent of Americans feel that persistent inflationary price increases are putting financial stress on their household finances, with little change over the past year. I made it.

“Despite a slight improvement in Americans’ views of the nation’s economic situation, the proportion of Americans who view recent price increases as a personal hardship is still small,” Gallup analysts wrote in a new report. There has been no change.”

This latest news comes as President Biden seeks to strengthen Americans’ views on the economy while seeking re-election. Biden is also struggling with his approval ratings amid continued economic concerns.

A Gallup poll released last week found that Biden’s approval rating in 2023 is on average around 40%, the lowest for a third-year U.S. president since former President Carter took the White House. There was found.

The latest economic confidence index has increased by 6 points since last month and 14 points since November, to -26 points this month. Gallup’s scale ranges from +100 (if all respondents say the economy is good and getting better) to -100 (if all respondents say the economy is bad or getting worse) This is the range.

The index has remained mostly negative since the coronavirus disease (COVID-19) pandemic began in 2020. The index sank to its worst level since the Great Recession in June 2022 (-58), but has been steadily trending upward.

About 45% of respondents surveyed for this month’s index rated the current domestic economic situation as poor. One in four said their condition was excellent or good, and the remaining 29% said their condition was fair.

Regarding the overall outlook, 63% of respondents said the economy is worsening, 30% said it is improving, and 4% said the situation will remain the same.

“Recent shifts in Americans’ views about the economy and its trajectory are largely due to increased Democratic Party assertiveness,” Gallup analysts said, noting that there is a growing sense of confidence in the current state and trajectory of the economy. did.

For Republicans and independents, there was little change from the previous survey.

The survey, conducted among 1,011 adults nationwide from January 2nd to January 22nd, had a margin of error of plus or minus 4 percentage points with a 95% confidence level.