US Consumer Economic Confidence Levels Off, Says Gallup

(IDEX Online News) – Gallup's U.S. Economic Confidence Index was -9 for the week ending July 7, about the same for results from the past month, according to the Gallup organization.

The index has been slightly lower since reaching a five-year weekly high of -3 in late May and early June, but confidence has for the most part risen from levels over the past five years.

The relatively lower levels of confidence in June and early July may be a result of more volatility in U.S. stock prices and an unemployment rate that refuses to fall significantly almost five years after the global financial crisis struck.

Nonetheless, Americans' confidence remains stable due to steady job creation as reported by the U.S. Bureau of Labor Statistics.

Consumers' confidence in the economy jumped from strong falls during the "fiscal cliff" debate and sequestration budget cuts earlier this year. Confidence moved closer to being positive and reached its best weekly level in over five years in late May and early June after U.S. stock prices surged and housing values increased.

Gallup's Economic Confidence Index is based on consumers' ratings of current economic conditions and whether the economy is improving or worsening. Americans' assessments of both index components held steady last week.

For the most recent week, 45 percent of Americans say the economy is getting better and 51 percent say it is worsening, for a net economic outlook score of -6. This score has declined by 10 points since the week ending June 2, when Americans were more likely to say the economy was getting better than getting worse.

Meanwhile, 20 percent of Americans say the economy is "excellent" or "good," while 32 percent say it is "poor," for a net current conditions score of -12. This score is slightly lower than -9 in the week ending June 2, but similar to scores from the past month.

Americans' confidence in the economy has leveled off in recent weeks, as signs about the nation's economic recovery have been mixed.