Consumer Comeback Blog

New Gallup Report Shows Economic Confidence Lowest Since Dec. 2011

Consumer outlook for the U.S. economy slipped to the lowest level since January, reports new data from Gallup. U.S. households held a negative view for both the current economic conditions and the perceptions of the economy’s direction.

The Gallup Economic Confidence registered a -27 for the month of August, which matches the prior monthly low for the year in January, reports Daily Finance. According to Gallup, the reading shows a drop of 10 percentage points from the four-year high of -17 recorded in May.

The largest drop was in consumers’ views about their own economic future, with the outlook dimension falling three points from -23 to -26. Consumer perception of current economic conditions remained stable at -29, a rating that was one point below the July average and similar to levels seen from January to March, reports Gallup.

Economic confidence was highest amongst self-identified Democrats which improved from +7 to +9. Confidence amongst self-identified Independents and Republicans dropped three points from -30 to -33, for Independents, and -54 to -57, for Republicans.

Additionally, Gallup’s data shows that economic confidence didn’t improve during the Republican National Convention—and in fact dropped -29, the lowest rating of the entire month. However, the three-point drop throughout August, -26 to -29, was less than the six-point drop in July and the eight-point drop in June.