U.S. Economic Confidence Surges To The Highest Level That Gallup Has Ever Recorded

Tyler Durden's picture

Submitted by Michael Snyder via The Economic Collapse blog,

Gallup’s U.S. Economic Confidence Index has never been higher than it is today.  The “Trumphoria” that has gripped the nation ever since Donald Trump’s miraculous victory on election night shows no signs of letting up.  Tens of millions of Americans that were deeply troubled by Barack Obama’s policies over the last eight years are feeling optimistic about the future for the first time in a very long time.  And it is hard to blame them, because what we have already seen happen since November 8th is nothing short of extraordinary.  The stock market keeps hitting record high after record high, the U.S. dollar is now the strongest that it has been in 14 years, and CEOs are personally promising Trump that they will bring jobs back to the United States.  These are things worth getting excited about, and so it makes perfect sense that Gallup’s U.S. Economic Confidence Index has now risen to the highest level that Gallup has ever seen

Americans’ confidence in the economy continues to gradually strengthen after last month’s post-election surge. Gallup’s U.S. Economic Confidence Index averaged +10 for the week ending Dec. 18, marking another new high in its nine-year trend.

 

The latest figure is up slightly from the index’s previous high of +8 recorded in both of the prior two weeks. The first positive double-digit index score since the inception of Gallup Daily tracking in 2008 reflects a stark change in Americans’ confidence in the U.S. economy from the negative views they expressed in most weeks over the past nine years.

And of course this booming level of confidence is not just reflected in Gallup’s numbers.  As I discussed in a previous article, the mammoth shift in the results of CNBC’s All-America Economic Survey after the election was nothing short of historic…

The CNBC All-America Economic Survey for the fourth quarter found that the percentage of Americans who believe the economy will get better in the next year jumped an unprecedented 17 points to 42 percent, compared with before the election. It’s the highest level since President Barack Obama was first elected in 2008.

 

The surge was powered by Republicans and independents reversing their outlooks. Republicans swung from deeply pessimistic, with just 15 percent saying the economy would improve in the next year, to strongly optimistic, with 74 percent believing in an economic upswing. Optimism among independents doubled but it fell by more than half for Democrats. Just 16 percent think the economy will improve.

On Tuesday, the Dow Jones Industrial Average closed at yet another all-time record high.

That was the 17th record close since election day, and overall the Dow is up a whopping 8 percent during that time span.

I don’t think that we have ever seen an extended post-election stock market rally quite like this one, and the U.S. dollar is rallying too. 

On Tuesday, the U.S. dollar was the strongest that it has been in 14 years

The dollar hit a fresh 14-year high on Tuesday, boosted by upbeat comments from Federal Reserve Chair Janet Yellen that kept alive market expectations for swifter U.S. interest rate hikes next year than had been expected.

 

The greenback climbed broadly but its gains were strongest against the yen, which slid as much as 1 percent after the Bank of Japan kept monetary policy unchanged.

But of course not everything is rainbows and unicorns. 

Signs of trouble continue to erupt all over the U.S. economy, and there are many that believe that Trump will be facing some very serious economic concerns very early in his presidency.

Just look at what is happening in the auto industry.  Unsold vehicles are piling up at an alarming pace at dealers all over the nation, and GM just announced that it is going to temporarily close five factories

GM has been reacting to its fabulously ballooning inventory glut by piling incentives on its vehicles. But that hasn’t worked all that well though it cost a lot of money. Now it’s time to get serious.

 

It will temporarily close five assembly plants in January and lay off over 10,000 employees, spokeswoman Dayna Hart said today.

And GM is definitely not alone.  Back in October, Ford made a similar announcement

In October, Ford announced that it would temporarily shut down production at one of its F-150 assembly plants (Kansas City), along with production at a plant that assembles the Escape and the Lincoln MKC (Louisville), plus two plants in Mexico. It would also lay off about 13,000 workers, 9,000 in the US and 4,000 in Mexico.

Another signal that the economy is slowing down is the tremendous difficulty that Uber is experiencing right now.  If you can believe it, they just announced that they lost a staggering 800 million dollars in the third quarter

Uber racked up pro-forma losses of more than $800m in the third quarter of this year as a price war with rival ride-hailing service Lyft in the US and heavy spending on new initiatives weighed on its figures, according to a person familiar with its recent financial performance, reports The Financial Times.

 

The third-quarter figures, first reported by tech news site The Information, show that Uber still faces steep losses even after pulling back from China.

I don’t understand how Uber could possibly lose 800 million dollars in three months.  Something is definitely very wrong over there.

Personally, I hope that things go as well as possible during the Trump administration.  If we truly are entering a new golden era of peace and prosperity, that would be more than okay with me.

But we should not forget that our economic fundamentals have continued to deteriorate all throughout the Obama years, and our nation has been steadily accumulating the largest mountain of debt the world has ever seen.

Unless there is some sort of unprecedented miracle, there is no way that this giant bubble that we are in at the moment is going to end well.  So it is definitely good to be optimistic, but we also need to be realistic about where we are right now and about the great challenges that we will soon be facing.

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I woke up's picture

An engine runs best right before it blows up

Joe Davola's picture

Trump is the anti-Coolidge in mannerisms and lifestyle.  The "You lose" Coolidge anecdote is perhaps the best attributed to any president.  Cal could have gotten by with 10 character Twitter.

hedgeless_horseman's picture

U.S. Economic Confidence Surges To The Highest Level That Gallup Has Ever Recorded

They are ringing a bell.

Does anybody else hear it?

laser's picture

Euphoria spreads over our culture like the broad grin of an idiot.

hedgeless_horseman's picture

 

Step right up folks!

You can't win, if you don't play!

Just look at all these fabulous prizes!

It's so easy.  Anyone can win!

Just two tickets.

JRobby's picture

Final scene: "thousands of citizens surrounded with more packages than they could possible carry bludgeoned to death in the mega-mall parking lot on their way to vehicles that they never owned"

Citxmech's picture

Cue Baghdad Bob's "We are winning!" speech

No finger on the scale of this State-sponsored poll, right?

My BS meter is pegged on this one.

Uchtdorf's picture

The bigger they are, the harder they fall.

Raffie's picture

Can I win the Brooklyn Bridge please?

Aloysius Snuffleupagus's picture

"The highest level that Gallup has ever recorded" since starting the poll in 2008. So actually a meaningless clickbait headline.

cheech_wizard's picture

No, it doesn't. You just aren't paying attention, because you are driving to fast with the widows down and the radio blaring.

Standard Disclaimer: You have 5 senses. I have six. I see dead people.

 

hedgeless_horseman's picture

You have 5 senses. I have six. I see dead people.

You have six.  I have FLIR.  I see live people.

http://www.flir.com/thermoSightR-Series/video/

TeamDepends's picture

Set up
Like a bowling pin
Knocked down
It gets to wearin' thin
Just keep truckin' on
-Grateful Dead

nuubee's picture

I am legitimately surprised by this melt up.

francis scott falseflag's picture

 

Grasping at straws

 

This idiom refers to a drowning man grabbing any floating object, even a straw, to save himself. It was first used by Thomas More in Dialogue of Comfort Against Tribulation (1534).

NotApplicable's picture

It's like everyone is forgetting that Janet will kick Trump squarely in the balls.

Does no one remember the first TARP vote?

JRobby's picture

Janet will have her head piked.

There are thousands of academics in line to take her place.

Luc X. Ifer's picture

Krugman also. Rumours that his pink-slip is ready.

yogibear's picture

The libtards look stupid now that stocks are soaring to new highs.

Osmium's picture

Well, they looked stupid before that too ;)

Yes We Can. But Lets Not.'s picture

Obama had thought stocks rose during his regime on account of him.

Now her learns that he'd been holding stocks back.

corporatewhore's picture

I'm feeling hopeless arent you Michelle?/ sarc

JRobby's picture

Now he learns that if S&P 500 non-GAAP earnings since 2011 were corrected to reflect GAAP earnings, GDP would be flat or negative.

onwisconsinbadger's picture

Tweet from Drumpf : Gallup is a fraud.

29.5 hours's picture

Yes, just let's pile on!

Confidence and sentiment over facts.

link:

This is a 1950s-style market and we could see another decade of gains: BofAML

nmewn's picture

I'm blaming it on the frigid weather! 

wmbz's picture

Right up there with Coolidge.

Silent Cal was one of the best Presidents we had, if not the best in modern times! IMO.

Soul Glow's picture

Because everyone stays glued to the stock market and no one pays attention to bonds.  Once Boomers get their 401ks in March it will be a different story.  They will be flabbergasted they lost money with stocks at all time highs.  Yet, that's how it is.

King Tut's picture

I blame the Yankee bankers

Consuelo's picture

 

 

 Damned Yankees...

 

 

Gladi8tor's picture

LONG LIVE TRUMP!!!!  HILLARY FOR PRISON!

King Tut's picture

"Feels good, man"- Pepe the Frog

francis scott falseflag's picture

 

 

"Of course everything is not rainbows and unicorns"

 

 

IS TOO, GRINCHBREATH

Hohum's picture

It shows that Americans are great believers in debt accumulation.

NumNutt's picture

I just want the shit show to stick together until January 1, then it is SELL SELL SELL! Hello wad-O-cash, minus capital gains.....but still better then it was before. Also it sounds like it is getting close to the time to purchse a newer car (not off the lot new = ripoff).

silverer's picture

There will be bargains galore, quite possibly.

StreetObserver's picture

Wait til February so that the Trump administration gets the sales numbers. Also, there's a huge number of used cars hitting the market in February as leases expire, plus the usual post Christmas sales of last resort.

Everything will be cheper in price and dearer in nice in February.

Joe Davola's picture

Last few times I've gone past the Manheim lot it's been pretty full.  Headed past it tonight, I'll see what it looks like.

Grimaldus's picture

Gallup has less than zero cred. Fuck them.

 

 

 

 

 

Grimaldus

HokumYTrader's picture

CNBS and Liesman have less

Cassandra.Hermes's picture

Do you remember Bush last month?

I was looking at 

United States Consumer Sentiment

Obama managed to keep it above 90% for two years

everlearner's picture

the chart doesn't show o'drama, if it did, it would probably be -100%

StreetObserver's picture

You bet our confidence is up!

All the things that we have put off buying, the supplies, replacement parts, the new computer, roofing material, tires etc, all get bought in February when the credit goes to Trump's administration.

Meanwhile it's "Oboycott" time. Sitting on the wallet, buying nothing but food and gasoline until February and the Obamanation is over.

Angry White Guy's picture

Ford and GM could try manufacturing quality machines that aren't 50% over priced....for starters.

silverer's picture

Taking out the 5 or 6 thousand dollars worth of unnecessary government add-ons would also help.

begintowin's picture

How true. 

Pretty soon the government will mandate I must wear a backup camera so I can see the crack in my butt.

silverer's picture

"Unless there is some sort of unprecedented miracle, there is no way that this giant bubble that we are in at the moment is going to end well."

Amen.

.