San Francisco, CA (PRWEB) January 16, 2013
Gallup's U.S. Economic Confidence Index came in at an overall -21 for the week ending January 6, 2013, little changed from the prior week’s reading of -22. Though Americans’ confidence in the U.S. economy appeared to be increasing in November, the fiscal cliff debate and subsequent agreements has dampened both current and future confidence in the economy.
The -21 reading came during the days that Washington lawmakers came to an agreement for resolving the fiscal cliff, which President Obama signed into law on January 2. Confidence in the economy was at a 4 year high in November, however the uncertainty surrounding the fiscal cliff issue caused confidence to nosedive through December. On a bright note, the reading is still considerably higher than the -54 recorded in August 2011 after the debt ceiling debate.
“Every part of the economy depends on Americans confidence in the stability and growth of that economy,” said Terry Robinson, president of The Lending Circle, a division of Sunovis Financial. “Without confidence in the economy no improvements are likely to be seen in hiring, spending, borrowing, or lending. It’s a vicious cycle. Some surveys show growing confidence in some industries or parts of the country, but the latest Gallup Poll shows the unease still at play."
The lower economic confidence reading was due to a combination of poor views regarding current conditions, and a worsening outlook for the future. The -18 reading for future economic conditions is down from a -1 reading posted in November. Current survey results show that 57 percent of Americans feel that the economy is getting worse, while only 39 percent believe it is getting better.
Beliefs regarding current economic conditions are no better. The current conditions reading is at -24, down from a reading of -18 in December. 40 percent of Americans say that the current economy is poor, with a mere 16 percent saying that it is excellent.
As Americans saw lawmakers struggle to come to an agreement regarding the fiscal cliff, their confidence fell dramatically. This lowered confidence has not improved, even though lawmakers came to an agreement and President Obama has signed into law the bill that was created to avoid the fiscal cliff.
Now that the deal is done and there is less uncertainty, perhaps Americans’ confidence regarding the economy will return. However, if concerns linger as they did after the debt ceiling debate in 2011, it could be several months before confidence in the U.S. economy returns.
About The Lending Circle
The Lending Circle, a division of Sunovis Financial, works to address the great pent-up need for financing nationwide, and will help borrowers with their needs whatever they may be. Their broad network of lenders is positioned to provide capital where it can do the most good.