POLL: Economic Pessimism Ties its Highest on Record
Over three-quarters of Americans say the national economy is getting worse.
May 13, 2008 — -- Economic pessimism reached its highest in 27 years of surveys this week, with more than three-quarters of Americans now saying the national economy is getting worse. Ratings of current conditions, meanwhile, are their weakest since July 1993.
The ABC News Consumer Comfort Index stands at -47 on its scale of +100 to -100 just 3 points from its all-time low in 22 years of weekly polling, -50 in February 1992. Ratings of personal finances and the national economy are their worst in 14 years; views of the buying climate tied their worst on record for the second straight week.
In a separate, monthly measure, 77 percent say the economy is getting worse, matching its level in October and November 1990, in the midst of the 1990-91 recession. That's its highest in polling since 1981.
A scant 4 percent say the economy is improving, a point off the record low. It's been 3 or 4 percent the last three months straight, a record. Similarly, more than six in 10 have said the economy is worsening for seven months straight, surpassing the previous record at that level, four months, in 1990.
The cause seems clear: On top of the credit and housing crises and generally weakening economic conditions, retail gasoline prices climbed 11 cents in the past week to another record, $3.72 per gallon. The Energy Department increased its oil and gas price estimates for the year.
INDEX – The CCI is based on Americans' ratings of their current finances, the national economy and the buying climate. Less than half, 46 percent, rate their personal finances positively, traditionally the index's strongest component. That's down 12 points on the year, 11 points off the long-term average and its worst since July 1993.
For the second straight week only 20 percent rate the buying climate positively, 18 points below the long-term average and tying the lowest mark in 22 years of surveys, previously reached in late 1990.
Fewer, 13 percent rate the national economy positively, the fewest since July 1993. Positive ratings of the national economy are down 18 points since the beginning of 2008 and 27 points below their long-term average.
