Economic Confidence Falls: Why Some Consumers Still Have It

Washington, D.C.Consumers who live in the District of Columbia have more economic confidence than residents of any other part of the country, according to a new Gallup poll. Maryland and Virginia also rank in the top 10 for consumer confidence.

One reason could be that government employment is still relatively strong near the nation's capitol -- at least for now, Gallup says. That could change as federal austerity makes its way through the system.

Overall, U.S. economic confidence has fallen. In the first half of the year, Gallup's Economic Confidence Index averaged -28 nationwide, falling slightly from the first six months of 2011, when the index averaged -26. The score reflects "Americans' pessimistic views of the current and future U.S. economy," according to the polling firm, which characterized the change in the index as essentially flat from last year.

Other states in the top 10 include North Dakota, South Dakota. Nebraska, Utah, Iowa, Minnesota and Massachusetts. These states produce commodities, a business that been helped by the demand for food, and Gallup believes that production has helped to keep confidence high.

The Unemployment Factor

But one of the biggest reasons some states are more confident than others may be simpler than that. According to the Bureau of Labor Statistics, June unemployment numbers were low in many of Gallup's most confident states, including North Dakota, South Dakota, Nebraska, Virginia, Minnesota, Iowa, Utah and Maryland. Many of the states with high unemployment also ended up scoring low on economic confidence.

Gallup attributes the low confidence, in some states, to other reasons. It reports that "the after-effects of the Gulf oil spill are evident as Louisiana, Mississippi and Florida joined the bottom 10 states. Other low-confidence states like Nevada continue to suffer from the bursting of the housing bubble." But, Nevada, Florida, Rhode Island, Mississippi, Florida and Kentucky -- which are all on Gallup's worst 10 list for economic confidence -- also are among the states with the highest unemployment.

Gallup may have a set of sophisticated reasons for how the states are positioned on the list. But there may be only one important reason -- unemployment.

Gallup's Economic Confidence Index is based on two questions: the first asking consumers to rate their perceptions of current economic conditions as "excellent," "good," "only fair," or "poor," and the second asking them whether economic conditions in the country are "getting better" or "getting worse." The results are based on telephone interviews with 87,634 employed adults, aged 18 and older, conducted between January and June.

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54 Comments

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amfnvf

All we need is the Geo.W. clone, R. Perry. Geo. drove the country into the dirt now this guy can finish riding it off the cliff.
The T.P. so eager to destroy the president are even willing to destroy their country to achieve this aim.

The ones who will lose the most are the cheerleaders. Talk bout ignorant, stupid , dumb!

August 21 2011 at 7:49 PM Report abuse rate up rate down Reply
Samir semaan

While consumer confidence is shifting down many factors could relate to that may be unemployment record or simply consumer is spending money on essential or preparing for the next year school or try to save for Christmas and New Year or labor day what ever is the consumers will be back spending but the Government must do something which is to monitor the social programs which will not be in the next rounds so savings must come from enforcement by the FBI and the money saved could be used to jolt the economy or to pay the deficit because I do not think Congress care about the economy or the risk of Downgrade the AAA ratings which solely fall on them or Congress is interested of stimulating this economy or raising taxes the result nothing could be done only the president can do what is constitutional that enforcing the law.

August 16 2011 at 11:28 PM Report abuse rate up rate down Reply
leetjbgsucjob

You cosmic dust bile dweeb slugs please report to level 13 for immediate dust bile ejection,Or report to the Obama re-election campaign headquarters.,,,,,,,,,,,,,,,,,,,,,,schnell ,schnell !!!!!!

August 15 2011 at 7:22 PM Report abuse -2 rate up rate down Reply
leetjbgsucjob

Please ! No opinions from you dust bile scumbags. I am your superior being,bow down you internet scum.

August 15 2011 at 7:18 PM Report abuse -3 rate up rate down Reply
leetjbgsucjob

Did you have a good time bending over Warren, Lee?

August 15 2011 at 7:13 PM Report abuse -4 rate up rate down Reply
gblank1603

If people would rely on facts instead of things they hear on the internet they would see that things are not as bad as most think they are.

August 15 2011 at 5:42 PM Report abuse rate up rate down Reply
seelbacher

If you only watch FOX News you don't know what's going on, you are brain washed. France and Britton got tripple A ratings because they cut spending and increased taxes. And their taxes are a lot higher than ours!

August 15 2011 at 3:57 PM Report abuse -3 rate up rate down Reply
4 replies to seelbacher's comment
Place it on LuckyDan

How bad is it? The Chinese now using fortune cookies to further discourage Americans in these tough economic times ... http://placeitonluckydan.com/2011/07/recession-fortune-cookies/

August 15 2011 at 3:44 PM Report abuse +1 rate up rate down Reply
cvdunbar

Ya know we are heading for very dark days when the goverment tells you if you dont buy into there welfare healthcare you will be fined. What is that? really! what is that? what next? we all HAVE to buy a plug in goverment motors car? or will they tell us if we have more than 2 kids we will be fined, well ya know Obama wants to or did already out law the old light bulbs, what is that? look around, the goverment likes are even telling you they will sin tax your treats, there even thinking about a miles tax, another fuel tax based on how many miles you drive, OMG, that should get us all out shoping. Its gotten so bad you dont know who to trust. I have this guy next door who is so dam green that he gets in my crawl when ever i work on my hobby race car, this guy is like 30+, was he always a tree hugger? i dont think so. Its like Americans have come un done with no direction. This goverment and Obama with his deep seeded plans will rear its ugly head if he gets 4 more. Things will not get better until the crazy self centered people and i didnt say a party i said people get on the same page and get with facts about a lot of things. I dont see jobs being created all i have seen is more growing goverment and goverment programs along with more laws and restrictions, never mind this out of control crap the world is melting and we need to plug in. Its crazy. All because some people wanted that trickle down effect of owning the American dream, a home, is that what the dream is all about? really, maybe we should get back some real good old days core values and dont count another mans money, maybe? But of course we all have to be the same, equal if you may. its just not in the plan for all of us to sit at the same desk per say.

August 15 2011 at 3:15 PM Report abuse +3 rate up rate down Reply
1 reply to cvdunbar's comment
jack

If you're going to rant, at least do us all the favor of going back to school to get your GED. Your grammer is awful. About as bad as what you have to say. No, wait. That's pretty bad too.

If you like living in the 1950's, fine. Go for it. And get yourself an analog phone, a comptometer and slide-rule while you're at it. May as well go all-in.

August 15 2011 at 3:40 PM Report abuse -3 rate up rate down Reply
2 replies to jack's comment
mrspelosi

Jacky darlin, please say howdy to yer grammer for me dear.

August 15 2011 at 7:04 PM Report abuse +2 rate up rate down
leetjbgsucjob

Who said "MeeOff" ?

August 15 2011 at 7:22 PM Report abuse rate up rate down
eurosnow

No wonder that the people who live in D.C. feel confidant about the economy. The majority of that area work for the government ! ! !

August 15 2011 at 3:07 PM Report abuse +4 rate up rate down Reply
1 reply to eurosnow's comment
cvdunbar

yepper.

August 15 2011 at 3:24 PM Report abuse +1 rate up rate down Reply