POLL: Pessimism Matches Two-Year High as Ratings of Economy Stumble
Pessimism about economy grew this month, along with current economic ratings.
Aug. 14, 2007 — -- Pessimism about the economy grew this month, along with current economic ratings. Despite these shaky views, confidence overall remains steady this week.
The ABC News/Washington Post Consumer Comfort Index stands at -11 this week on its scale of +100 to -100, in the same range as last week's -9, but down six points in the last three weeks. The recent slide wipes clean a mid-July surge as the index continues its bumpy summertime ride.
Ratings of the national economy reached a two-month low, pushing confidence back into negative double-digit territory. In a separate measure of expectations, 57 percent of Americans believe the economy is getting worse, well above the 26-year average of 39 percent. Pessimism hasn't been this high since October 2005, in the aftermath of Hurricane Katrina.
Things could be worse. The price of gas continues to decline, dropping 7 cents this week to $2.77 a gallon and 28 cents over the past month, according to Department of Energy surveys.
INDEX -- Positive ratings of the economy, at 37 percent, are taking more of a hit than the other components of the CCI and have dropped seven points since July 22. During that same time, ratings of the buying climate, at 39 percent, and personal finances, at 58 percent, have remained flat.
EXPECTATIONS -- As noted, pessimism is at a 22-month high, with 57 percent saying the economy is getting worse. Only 15 percent say the economy is improving, down from a 2007 high of 18 percent in January but up slightly from last month when 12 percent expressed optimism.
Pessimism is now 18 points higher than its long-term average in polls since March 1981 and 23 points higher than its 2007 low. It is, however, still lower than its all-time high of 77 percent in November and October of 1990.
The 42-point gap between optimism and pessimism is at its highest since May 2006. Pessimism is increasing, with fewer people on the fence this month. Only 26 percent believe the economy is "staying the same" this month, down 10 points from last month.
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