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

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

But further research shows inflation remains a major concern for most.

The latest Gallup Economic Confidence Index, released Tuesday, found that, while still negative overall, the outlook has improved over the past two months and reached its highest point since January 2022.

At the same time, Gallup’s probability-based panel found that 63 percent of Americans feel lingering price increases from inflation have caused financial stress on their households, showing little change in the past year.

“Despite modest improvements in Americans’ views of the national economic situation, there has been little change in the percentage who characterize recent price increases as a personal hardship,” Gallup’s analysts wrote in the latest report.

The latest news comes as President Biden has been trying to shore up Americans’ views on the economy while seeking reelection. Biden has also struggled with his approval ratings amid ongoing economic concerns.

In a survey released last week, Gallup found that Biden’s 2023 approval rating averaged about 40 percent — the lowest third-year showing of any U.S. president since former President Carter was in the White House.

The latest Economic Confidence Index rose by 6 points from last month and 14 points since November, hitting minus 26 this month. The Gallup scale ranges from 100 (if all respondents said the economy is good and getting better) to minus 100 (if all said it is bad and getting worse).

The index has stayed mostly negative since the COVID-19 pandemic started in 2020. In June 2022, it sunk to its worst level since the Great Recession hitting minus 58 but has been on a steady climb back up

About 45 percent of respondents surveyed for this month’s index rated current economic conditions in the country as poor. One in four described conditions as excellent or good, while another 29 percent said conditions are fair.

On the general outlook, 63 percent of respondents said they think the economy is getting worse, while 30 percent said it is improving and 4 percent said it is staying the same.

“The latest changes in Americans’ views of the economy and its trajectory are mainly owed to Democrats’ increased positivity,” Gallup’s analysts wrote, noting increases in confidence on current conditions and the trajectory.

Republicans and independents saw little change since the last survey.

The survey was conducted between Jan. 2-22 among 1,011 adults across the U.S. and has a margin of error of 4 percentage points.