Americans are not feeling very confident about the economy these days.
Almost half (48%) of Americans say economic conditions are worsening, up from 45% in December and 36% in November, according to a recent poll by Gallup, a Washington, D.C.-based research and consulting firm.
Their concerns aren’t completely unfounded. In the last two months, Americans have seen sensational volatility in the stock market, a trade war with China, and a government report highlighting an uptick in unemployment — although it remains at a record low. A nearly month-long government shutdown that has more than 800,000 federal employees out of work and countless others losing income as a result may also have contributed to the increase in pessimism.
Gallup conducted the poll from Jan. 2 through 10 (the shutdown started Dec. 22) and questioned a random sample of 1,017 adults, age 18 and older, living in all 50 U.S. states.
Americans’ views on the economy also differ by political party. A majority of Republicans (83%) said the economy was getting better compared to 18% of Democrats. The party gap was wider than it has been in the last two months, with a 65-percentage point difference between the two parties on this issue.
The government shutdown, sparked by a debate between President Trump and Congress over funding for Trump’s proposed border wall, is the latest political action to affect the economy, according to Steven Blitz, chief U.S. economist at TS Lombard. Other “missteps” that could hurt the economy include the U.S.’s trade battle with China and the Federal Reserve’s pace in future rate increases, the economist said.
A White House report estimated the partial government shutdown will trim growth in first-quarter gross domestic product by 0.5 percentage points if it lasts through January, what with less government spending and more private contractors out of work.
Still, Americans seem confident in job availability, according to the Gallup poll. Two-thirds said it was a good time to find a quality job. Almost half of those who said the economy is worsening thought so, too. Confidence in the job market has been steadily between 64% and 68% in the last nine months.
