Americans are feeling more optimistic now about the economy than they have for a number of years, a new poll has found.
Why It Matters
The U.S. economy has been tumultuous in recent years as America recovered from the impact of the coronavirus pandemic, and the health of the U.S. economy was a major concern for voters in the 2024 presidential election. Many cast their ballots hoping Donald Trump, who was inaugurated last month, would succeed in his promises to curb inflation while revitalizing U.S. trade and industry.
What To Know
A new poll conducted by Gallup between January 2 and 15 of 1,005 adults shows that Americans are more optimistic about the U.S. economy than they have been in the past seven years. A slim majority of 53 percent believe the economy will improve over the next six months, compared to 29 percent who think it may get worse.
When asked the same question in previous years, optimism was less broad, with 44 percent saying in 2020 they thought the economy would grow under then-President Joe Biden. Later in his tenure in 2023, as inflation was climbing down from a high of 9.1 percent the year before, just under 40 percent thought America’s economic prospects would brighten.
Elsewhere, 61 percent of those polled expect both the stock market improve in the next six months after a better-than-expected performance in 2024. However, optimism about interest rates is less widespread, with 41 percent believing they will decline—outpacing 35 percent who think they will rise.
Opinions are evenly split on unemployment, with 38 percent predicting an increase and 38 percent expecting a decrease. However, with unemployment currently low, the 21 percent who foresee it remaining stable “could be viewed as positive,” Gallup said.
Meanwhile, 52 percent anticipate inflation will rise, though this marks a notable decline from previous years—in 2022, at the height of America’s post-pandemic recovery, some 80 percent thought inflation would get worse.
Republican Vs. Democrat
The poll found the majority of Republicans believe all economic measures—inflation, stock market, unemployment, interest rates—will improve in the next six months, but Democrats are not of the same mind.
Seventy-six percent of Democrats said they expect inflation to rise, and 59 percent said they expected unemployment to increase. Only 21 percent said they believe the economy will grow in the next six months.
What People Are Saying
Gallup senior editor Jeffrey M. Jones said: “Americans are generally hopeful about the economy in the next six months. Part of this optimism stems from Republicans expecting things to improve under a Republican rather than Democratic president. But the broader improvements in Americans’ outlook may also reflect their confidence in Trump’s ability to handle the economy.”
President Trump, speaking via teleconference at the World Economic Forum in Davos, Switzerland, on January 23, said his administration “begins with confronting the economic chaos caused by the failed policies of the last administration. Over the past four years, our government racked up $8 trillion in wasteful deficit spending and inflicted nation-wrecking energy restrictions, crippling regulations, and hidden taxes like never before. The result is the worst inflation crisis in modern history and sky-high interest rates for our citizens and even throughout the world. Food prices and the price of almost every other thing known to mankind went through the roof.”
What Happens Next
Exactly how the economy will play out in the coming months is uncertain, particularly with Trump’s wide-ranging agenda that includes lowering taxes and increasing tariffs on America’s major trade partners.
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