The Gallup US economic confidence index fell to -27 last week, the lowest reading since the end of January. The best reading so far this year came in mid-May at -16, a four-year best.
The sub-index reading for current economic conditions fell from -27 to -30 when compared with the previous week. Even worse, the reading for perceptions of the economy’s direction fell from -18 to -23, the lowest reading since January.
Gallup attributes the drop to the weak June unemployment report, although on a three-day rolling average basis, Americans’ confidence has rebounded from a low of -29 to last week’s -23. That’s not terribly comforting, but good news is where you find it.
Gallup sums up its data this way:
While Americans’ economic mood was relatively glum last week, it is unlikely to get worse this week and thus far, at least, seems to be mildly improving. Still, confidence remains quite negative, and below the level that Gallup has determined may be necessary for President Barack Obama to achieve re-election-friendly job approval ratings.