Americans’ confidence in the U.S. economy improved in July, with Gallup’s Economic Confidence Index rising seven points to 27, according to the analytics company. The latest index is the highest Gallup has measured since February.
Americans’ confidence in the economy may have received a boost from a strong June jobs report delivered by the Department of Labor midway through Gallup’s polling period of July 1-12. Additionally, the month of June saw massive gains in the stock market, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all reaching highs in early July. The Dow cracked the 27,000 mark for the first time in history just before the end of Gallup’s polling period.
Gallup’s Economic Confidence Index is the average of two components: Americans’ ratings of current economic conditions and their views on whether the economy is getting better or getting worse. The index has a theoretical maximum of 100, if all Americans believe the economy is excellent or good and getting better. The theoretical minimum is -100, achieved if all Americans say the economy is poor and getting worse.
The index’s increase this month is mostly due to more Americans saying the economy is getting better than did so in June. A majority, 54%, now perceive the economy is improving, up from 49% last month. Conversely, there has been an eight-percentage-point decline, from 45% to 37%, in the percentage saying it is getting worse. Read the full Gallup report.