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US Economic Confidence Tumbles Back Into Negative Territory As "Hope" Fades

Submitted by Tyler Durden on 02/24/2015 15:51 -0400

With economic data serially disappointing in 2015, it is probably not entirely surprising that Gallup's U.S. Economic Confidence Index fell to an average of -2 last week (with the biggest drop since July). This is the first time the index has had a negative weekly average since late December. Both the current conditions and outlook sub-indices tumbled but it was the future 'hope' index that fell the most with more people now saying the future will be 'poor' than believe it will be 'good'.

As Gallup reports, the U.S. Economic Confidence Index fell to an average of -2 for the week ending Feb. 22

This is the first time the index has had a negative weekly average since late December. Prior to that, the index had consistently been in negative territory since Gallup began tracking it daily in 2008.

The Economic Confidence Index fell five points from the week prior, the largest drop since July. The weekly index numbers are usually fairly stable, not changing more than a couple of points unless there is some significant event. It is not clear what is behind last week's decline in confidence, although quickly rising gas prices last week may have played a role -- given that the drop in gas prices coincided with the rise in confidence in late 2014. The index had more or less leveled off in early 2015 before this decline.

Gallup's Economic Confidence Index is the average of two components: how Americans rate current economic conditions and whether they say the economy is getting better or getting worse. Last week, both components dropped from the prior week, falling into negative territory.

For the week ending Feb. 22, 27% of Americans said the economy was "excellent" or "good," while 29% said it was "poor." This resulted in a current conditions score of -2, compared with +2 the week prior. Meanwhile, the economic outlook score also was -2, the result of 47% of Americans saying the economy is "getting better" while 49% said it is "getting worse." The economic outlook score is down from +3 the previous week.

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Suddenly higher gas prices? Cold weather? Stagnant wages? Higher Disneyworld prices? We assume those surveyed have not been watching CNBC and looking at their 401(k)s...

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Tue, 02/24/2015 - 15:53 | 5823525 HonkyShogun

Hopey McChange, Mufuggas

Tue, 02/24/2015 - 15:55 | 5823547 nuubee

Are the people polled the same people who enjoy watching American Idol?... I think I've made my point...

Tue, 02/24/2015 - 15:57 | 5823550 SickDollar

and yet they tell us the sky is blue and beautiful

Tue, 02/24/2015 - 15:59 | 5823565 flacon

So what we are saying here is... this is a good time to buy US Stocks. When things are down they can only get better!!! /sarc

Tue, 02/24/2015 - 15:59 | 5823571 knukles

Oh boy, I can't wait for the next Ghoul-N-Sucks Swirl-O-Gram

Tue, 02/24/2015 - 16:14 | 5823630 duo

The Obamcare Recession is proceding exactly how I expected it to.

Tue, 02/24/2015 - 16:33 | 5823724 Miffed Microbio...

Frankly I would really be interested in the demographic of those in this index. Had I been polled I'm sure the call wouldnt be used for training purposes.

Miffed

Tue, 02/24/2015 - 15:58 | 5823563 dimwitted economist

i "Hope" this Depression is getting Better!

Tue, 02/24/2015 - 16:03 | 5823583 Syrin

The sheeple McFuckheads wanted it, and they're about to get it

Tue, 02/24/2015 - 16:22 | 5823664 HonkyShogun

^ Post of the Day

Wed, 02/25/2015 - 02:29 | 5825909 one_hundred

my neighbor's mother makes $86 /hr on the computer . She has been laid off for 10 months but last month her pay was $21128 just working on the computer for a few hours. go to the website... www.globe-report.com

Tue, 02/24/2015 - 15:53 | 5823528 NoDebt

Hope you all caught a quick breath before we go under again. It may be a while before you get your next one.

Tue, 02/24/2015 - 15:54 | 5823531 miker

The realization grinds on. One thing good about our 'democracy' is that eventually word gets out. It takes awhile, but eventually enough people figure it out.

Tue, 02/24/2015 - 15:54 | 5823534 Hohum

If America had listened to Gallup and elected Willard Romney in 2012, ah never mind.

Tue, 02/24/2015 - 15:55 | 5823542 DontGive

Moar hopium please, I'm jonesing!!

Tue, 02/24/2015 - 15:59 | 5823568 venturen

hope for what?....DOW will go up 200 points a day from now on...regardless of ANYTHING. Of course this is the final pump before the colossal dump. Just don't know when people wake up to the rampant theft of their future....probably the day they vote a republican into the White House I suppose. We are now living the Bonfire of the Vanities!

Tue, 02/24/2015 - 16:03 | 5823581 Squid Viscous

Time to reverse split the TVIX again, keep up the bearishness TD!!!

Tue, 02/24/2015 - 16:05 | 5823591 undercover brother

This was a well written article, but sadly, pointless and a waste of brain power. economic indicators no longer matter, earnings no longer matter. the only thing that matters now is the fed and their $5 trillion hedge fund, corporate buybacks and front running HFT's. what was a two way market is broken and dead. Risk on until the fed says they are changing policy and hope you're not the last out the door.

Tue, 02/24/2015 - 16:08 | 5823604 Gold N Glocks