The latest survey data released by Gallup shows that Americans’ confidence in the economy has decreased. This marks the first time in five months that there has been no marginal improvement in economic confidence, and it is also the first decline in seven months. The decrease in confidence comes as inflation continues to be a concern, with underperforming Gross Domestic Product data being released by the federal government after the polling was conducted from April 1-22.
Inflation remains a top concern for Americans, with 55% of respondents saying they worry “a great deal” about it, according to Gallup polling. Recent GDP data showed growth at an annual rate of only 1.6% in the first quarter of 2024, which is well below experts’ projections and lower than the 3.4% growth from the previous quarter at the end of 2023.
Gallup suggests that the economic confidence results could have significant political implications, comparing the current Economic Confidence Index (ECI) score of -29 to other years like 1992 when incumbent President George H.W. Bush lost the election in a campaign dominated by economic concerns. On the other hand, neutral economic confidence ratings in other election years like 2004 and 2012 contrast with the positive rating in 1996 when Bill Clinton won a second term.
