A recent survey conducted by Gallup has revealed a substantial drop in Americans’ confidence in the economy, marking the first decline since the fall. The Gallup Economic Confidence Index, which measures the public’s perception of current economic conditions, has fallen nine points to -29 in April, down from -20 in March.
The index, which ranges from +100 to -100, indicates that Americans are increasingly pessimistic about the economy. Only 24% of adults surveyed believe the current economic conditions are “excellent” or “good,” while 32% consider them “only fair.” 44% rate the economic conditions as “poor.”
U.S. Economic Confidence Falls for First Time Since October (Credits: Gallup News)
The decline in confidence is evident across political lines, with Democrats, independents, and Republicans all showing decreased optimism.
Democrats, who have historically been the most economically optimistic group, saw a four-point decline in their index score, from 35 to 31, since March. Independents’ confidence fell 10 points, from -28 to -38, while Republicans’ confidence dropped from -62 to -71.
The all-in-all index has fluctuated over the past 20 years, reaching its highest point at +56 in January 2000 and its lowest at -72 in October 2008. During the pandemic, the index dropped sharply, from +41 in February 2020 to -32 in April 2020. Since then, it has only briefly gone above zero in April 2021 and June 2021 before returning to negative territory.
Economic Confidence in U.S. Matches Early Pandemic Low (Credits: Gallup News)
The survey, conducted among 1,001 adults from April 1-22, coincided with rising gas prices and inflation, a decline in the stock market, and high interest rates. The margin of error for the survey is 4 percentage points.
The decline in economic confidence suggests that Americans are becoming increasingly concerned about the economy, and this trend may continue unless there are improvements in economic conditions.
