A recent survey by Gallup revealed a nine-point decline in Americans’ confidence in the economy since the previous month, marking the first decrease since the fall. The Gallup Economic Confidence Index, which measures public perception of current economic conditions, dropped to -29 in April from -20 in March.
According to Gallup’s report, 24 percent of U.S. adults view economic conditions as “excellent” or “good,” 32 percent say conditions are “only fair,” and 44 percent rate them as “poor.” The data shows a decrease in positive ratings compared to the previous month and an increase in the percentage of individuals who view economic conditions as poor.
The decline in economic confidence was observed across all political affiliations in April. For instance, despite Democrats traditionally being more optimistic about the economy, their confidence decreased by four points, from 35 to 31. Similarly, independents saw a decline of 10 points, dropping from -28 to -38. Republicans, who have been particularly negative about the economy under President Biden, recorded a significant decrease in confidence, falling from -62 to -71.
Despite this recent drop in confidence, historical data from Gallup shows that the index reached its lowest point in October 2023 at -41 and increased thereafter. Americans have indicated a perception of the economy as improving despite this recent decline in confidence. The index has reached its highest score of +56 in January 2000 and its lowest at -72 in October 2008.
The survey was conducted between April 1-22 during a period of rising gas prices and inflation, fluctuating stock markets and high interest rates. The study included 1,001 adult participants and has a margin of error of four percentage points.