Even in the face of a prolonged consumer recession, high unemployment, and a housing crisis, American confidence has risen to the best level this year.
According to Gallup: “Americans’ economic optimism seems to have re-ignited amid a surge on Wall Street, aggressive Federal Reserve actions to inject money into the economy, a better-than-expected jobs report, and the completion of the midterm elections. Gallup’s Economic Confidence Index averaged -22 over the first week of November — an improvement from the monthly readings of -29 in October and -33 in September — and tying the best monthly reading of 2010.”
The number of people who say that economy is getting worse has also dropped, but remains at remarkably high levels.
“During the first week of November, 55% of consumers said economic conditions are “getting worse” — an improvement compared with the 60% October average and the 62% of September. Right now, consumers’ future expectations for the economy are better than the 59% of the same week in 2009.”
While the headline of the study may be that sentiment has improved, there is is little evidence that the level of desperation among people has risen to level that should encourage politicians or economists.
Douglas A. McIntyre
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