US Economic Confidence Index

Gallup’s US Economic Confidence Index is the average of two components: how Americans rate current economic conditions, and whether they feel the economy is improving or getting worse. The index has a theoretical maximum of +100 if all Americans say the economy is doing well and improving, and a theoretical minimum of -100 if all Americans say the economy is doing poorly and getting worse.

economic-confidence-index-in-the-us

If you look at the chart above, rapid swings are not too common and happen, on average, every two years. In the last 10 years, it went down three times by a large number, and then recovered within half-a-year.  After the recovery, it maintained its level for a few years.

Once, it went up by a lot and declined all within a year.  So, it doesn’t seem that this Economic Confidence Index has long-term predictive power.

This entry was posted in Data Analysis and Visualization, Money, business, investments, statistics, trends, Past, present, and future and tagged . Bookmark the permalink.

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