The latest Gallup Economic Confidence Index fell from a reading of -22 in June to -26 in July, about equal to the low reading for the year of -27 in January. The index reading had improved to -17 in May before sliding in each of the last two months. The July index, for all its warts, is still better than the -42 index reading in July 2011.
The index measures Americans’ assessment of both current economic conditions and the economic outlook in the US. On current conditions, only 14% of those surveyed said the economy is in good or excellent condition, while 42% rated current conditions as poor.
The index for the country’s economic outlook 36% of those surveyed saying that conditions are improving and 59% saying things are getting worse.
Gallup suggests that lukewarm unemployment reports, little positive economic news in the US, and continuing bad news from Europe combined to push the confidence index down in July. That just about covers it.