A recent survey by Gallup reveals that Americans’ confidence in the economy has decreased by nine points since last month, marking the first decline in confidence since the fall. The Gallup Economic Confidence Index, which measures public opinion on current economic conditions, dropped to -29 in April from -20 in March.
The index ranges from +100 to -100, with higher numbers indicating positive economic conditions and lower numbers indicating poor economic conditions. In April, 24% of U.S. adults rated the current economic conditions as “excellent” or “good,” while 32% considered them “only fair.” On the other hand, 44% rated the economic conditions as “poor.”
According to the survey, confidence in the economy declined across political lines, with Democrats experiencing a four-point drop in their index score and Republicans expressing overwhelmingly negative views. However, it is worth noting that this decline was not as significant as it seems since it had reached its lowest point in October 2023 but had been gradually increasing until April 2024.
The survey was conducted in early April when gas prices and inflation were rising, the stock market was retreating from its record highs, and interest rates remained high. The survey included responses from 1,001 adults and has a margin of error of 4 percentage points.
In conclusion, Americans’ confidence in the economy has declined since last month due to several factors such as rising gas prices and inflation, retreating stock market and high-interest rates. However, this decrease was not as significant as it seems since it had reached its lowest point before this period but had been gradually increasing until April 2024.