By Charles Passy and Greg Robb
MarketWatch Exclusive, Harris Poll finds that despite some encouraging economic trends, people remain deeply concerned
Despite some relatively good news earlier this year, Americans remain deeply concerned about the economy, according to a new Harris Poll poll made available exclusively to MarketWatch.
The poll, conducted this month, found that 87% of respondents were concerned about the economy and inflation – a number Harris Poll officials say has remained constant through all of the financial ups and downs over the past year.
Economic concern is “a big deal and has overtaken COVID as the main driver of fear,” said Harris Poll CEO Will Johnson.
For many Americans, perhaps it doesn’t matter that economic trends are improving, Johnson said, because “inflation is here, it’s real and [you’re] see everywhere.”
Economic data for January showed some positive news on several fronts.
In January, 517,000 new jobs were created – more than double the expected number – and the unemployment rate fell to 3.4%, the lowest since 1969.
And annual inflation, as measured by the consumer price index, fell for the seventh straight month in January, reaching an annualized rate of 6.4%. In June, the figure was 9.1% – a 40-year high. The rate measures the cost of goods and services compared to the previous year.
While that’s an improvement, the 6.4% rate is still far higher than the 2% inflation rate, which the Fed believes is best for the economy.
The poll also found that 50% of Americans say their financial situation is getting worse. As bad as that may seem, it’s an improvement on what the survey showed last June, when 64% said their situation was getting worse, Johnson noted.
In addition, the new Harris Poll found that 80% of Americans are worried about a possible US economic recession and 46% fear losing their jobs.
But another key barometer, the University of Michigan Consumer Sentiment Index, showed that Americans may be starting to feel better about the economy.
The Michigan index, which is based on answers to various financial questions, rose for the third straight month in February, rising 2.3 index points. However, the Michigan team noted that sentiment is still 14 index points lower than it was two years ago.
– Charles Passy
(ENDS) Dow Jones Newswires
02/23/23 1507ET
Copyright (c) 2023 Dow Jones & Company, Inc.
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