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The recent economic downturn in the United States has caused a decline in confidence among Americans, according to Gallup’s latest economic confidence rating. This rating dropped from March to April due to several factors, including elevated inflation and underperforming Gross Domestic Product data.
The U.S. Bureau of Economic Analysis recently reported that Personal Consumption Expenditure data showed a 0.3% increase in the previous month, while the federal Consumer Price Index reported a 0.4% increase in prices. Inflation is a major concern for Americans, with 55% expressing worry “a great deal” about it, according to Gallup polling.
The recent GDP data revealed growth at an annual rate of only 1.6% in the first quarter of 2024, much lower than projected and significantly lower than the previous quarter’s growth rate of 3.4% at the end of 2023. This could have significant political implications, as Gallup compared the current economic confidence score to those of previous election years, noting that it is similar to what it was in 1992 when incumbent president George H.W. Bush lost the election due to economic concerns. However, during Donald Trump’s reelection campaign in 2020, economic evaluations were mostly neutral, suggesting that positive economic confidence ratings can contribute to election wins but are not always a guarantee of success.
Overall, these developments suggest that Americans are less confident about their economy than they were before this year began and could impact their voting decisions come November if it continues to trend downward or if other factors such as job security or healthcare become more pressing concerns for voters.
In summary, Americans are becoming increasingly concerned about their economy with Gallup’s economic confidence rating dropping from March to April due to elevated inflation and underperforming GDP data released after polling was conducted from April 1-22 causing a decline in economic confidence for the first time in seven months.
