(NewsNation) — Americans’ overall view of the economy is improving although still largely negative, a new poll from Gallup shows.
Gallup tracks people’s view of national economic conditions monthly. These responses are combined and used to create what it calls the Gallup Economic Confidence Index, which has a theoretical range of plus-100 to minus-100. This index, according to Gallup, has been in “mostly negative territory” since January 2020, a sign many people in the U.S. thought the economy was doing poorly and getting worse.
The latest index score, from a Jan. 2-22 poll, is minus-26, up six points from December and 14 points since November. That’s the highest it has been since January 2022.
A few factors contribute to this uptick in consumer confidence. Unemployment is at historically low levels, the nation’s gross domestic product has been growing, and inflation is easing — though 63% of U.S. adults say recent price increases caused them financial hardship.
Still, the largest share of Americans said current economic conditions are “poor,” while only 5% call them “excellent,” and 22% describe them as “good.” About 29% say it is “fair.”
This month, 63% of Americans said the economy is getting worse, 30% believe it’s improving, and 4% say it’s the same.
Democrats were more positive about the economy than Republicans — 38% said the economy was excellent in December, while 54% did in January. The percentage of Democrats who think the economy is getting better also increased by ten points (64%) over the same period.
Republicans’ and independents’ views, on the other hand, did not change significantly. Of the GOP respondents surveyed, 8% of them rated it as “excellent or good.” Independents were slightly more optimistic, with 21% of them rating the economy this way.
“As the presidential election year gets underway, Americans — primarily Democrats — are feeling more optimistic about the economy even as they are still feeling the sting of higher prices,” Gallup’s Megan Brenan wrote. “Still, views of the economy remain largely negative, particularly among Republicans and independents, which could spell trouble for (current President Joe) Biden as he seeks reelection.”
The Associated Press contributed to this report.
