On February 2, 2016 Gallup released the poll results titled “U.S. Economic Confidence Index Flat at -11 in January.”
Notable excerpts include:
Americans’ confidence in the economy last month was unchanged from December. Gallup’s U.S. Economic Confidence Index averaged -11 for the month of January. This is much higher than most monthly averages recorded since 2008, but is still below the post-recession high of +3 found in January 2015.
Gallup’s Economic Confidence Index is the average of two components: how Americans rate current economic conditions and whether they believe the economy is improving or getting worse. The index has a theoretical high of +100, if all Americans rate the current economy positively and say it is improving. It has a theoretical low of -100, if all Americans rate the current economy poorly and say it is getting worse.
In January, 26% of Americans rated current economic conditions as “excellent” or “good,” while 29% rated them as “poor.” This resulted in a current conditions score of -3, similar to the -4 in December. Meanwhile, the economic outlook score was -18, matching the November and December scores. This was the result of 39% of Americans saying the economy is “getting better” and 57% saying it is “getting worse.”
Here is an accompanying chart of the two components (Sub-Indexes) of the Gallup Economic Confidence Index, discussed above:
Here is an accompanying chart of the Gallup Economic Confidence Index:
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1914.02 as this post is written