A July 3rd Gallup Economy article reported that many Americans’ confidence in the economy waivered in June. That trend appeared to be more prevalent among high-income citizens. The Gallup Economic Confidence Index is measured on a numeric scale, which ranges from values of +10 to -70.
In June, the index was recorded at -22, down from May’s score of -17. The Gallup Economy article did note however, that the index is still in the upper boundary of confidence. It also mentioned although slightly down in June, it is still greatly improved since the levels seen in 2008 and 2009 of -58 and -60.
The index is divided into two components:
- Americans’ opinions of current economic conditions
- Americans’ perceptions regarding if the economy is improving or declining or the economic outlook
For June 15% felt the current economic conditions were in excellent shape, while the majority, 41%, considered it poor which gave it a rating of -26. Since March, this aspect of the index has been between -28 and -23.
For the economic outlook, 38% of Americans claim it’s improving, while 56% feel it is in a continuing state of decline. That component fell at -18 on the index, which is the lowest it has been since January.
Among those making more than $90,000 a year, the Gallup Economic Confidence Index fell from -9 to -17 and 10 points lower among those in the $60,000 to $89,000 income bracket, from -11 to June’s rating of -21. According to the Gallup Poll, this reflects the lowest rating for upper-income Americans so far, for 2012.
Surprisingly, the index showed that lower-income Americans’ confidence is still more positive that it was at the start of 2012.
It is also noteworthy that this index correlates directly with US Stock Market trends, unemployment figures, national and global politics.