(11/30/10) -

Just 12% of Americans Think the U.S. Economy is in Good Shape

As country heads to holiday season, more than half of respondents describe their own financial situation as “poor” or “very poor.”

The level of confidence that Americans express on the country’s economy remains low, a new Angus Reid Public Opinion poll has found.

In the online survey of a representative national sample of 1,013 American adults, 85 per cent of respondents rate the economic conditions in the United States as “very poor” or “poor”, unchanged since October. In every single month throughout 2010, at least four-in-five Americans have consistently used the words “very poor” or “poor” to describe the state of the U.S. economy.

More than half of Americans (56%, -1) describe their own financial situation as “very poor” or “poor.” One-in-five respondents (21%, -6) believe the U.S. economy will decline in the next six months, while 20 per cent (+2) think it will improve.

As was the case last month, more than three-in-five Americans (63%) say that the recession will not be over until next year or after 2011.

Concerns, Inflation and Debt

The key economic concerns identified throughout the course of the year remain prevalent for many Americans. Almost half (46%, -2) are concerned about themselves or someone in their household becoming unemployed, while two-in-five have worried frequently or occasionally about the safety of their savings (43%, -2), the value of their investments (43%,-2) and their ability to pay their mortgage or rent (40%, -3). In addition, three-in-ten Americans (31%, -1) are concerned about their employer running into serious financial trouble.

Three-in-four respondents expect both the price of gas (76%, +1) and the cost of groceries (75%, +5) to increase in the next six months. Fewer Americans foresee paying more for a new car (44%, +5), a new TV (29%, +1) and real estate (26%, +1).

If Americans were given $1,000 to spend on anything, they would allocate the biggest amount of cash to paying down debt ($330), followed by covering day-to-day expenses ($241), savings ($197), spending on personal items ($93), setting aside for a big purchase ($62), investing in individual stocks ($41), and investing in mutual funds ($36).

Political Leadership

Despite the disappointing results for the Democratic Party in this month’s mid-term election, President Barack Obama continues to be the most trusted leader to handle the economy (48%, +5), followed by the Democratic Party (38%, +3), the Republican Party (31%, -1), Federal Reserve Chairman Ben Bernanke (30%, +1), and House of Representatives Speaker Nancy Pelosi (26%, =).

The governing Democratic Party is preferred over the Republican Party to end the recession (35% to 29%) and create jobs (42% to 30%), while the GOP is the top choice to rein in the national debt (35% to 30%). The two parties are almost evenly split on who is best to control inflation (Rep. 33%, Dem. 32%).

The U.S. Economy Compared to Others

In a finding that has been consistent throughout 2010, half of Americans (49%) readily admit that the U.S. economy is doing worse than the economy of China at this point. At least one-in-four Americans believe the U.S. economy is doing about the same as the economies of the United Kingdom (34%), Canada (30%), Germany (28%), France (27%) and Australia (26%).

Full Report, Detailed Tables and Methodology (PDF)

CONTACT:

Mario Canseco, Vice President, Communications & Media Relations
+877 730 3570
mario.canseco@angus-reid.com

Methodology: From November 22 to November 23, 2010, Angus Reid Public Opinion conducted an online survey among 1,013 American adults who are Springboard America panelists. The margin of error—which measures sampling variability—is +/- 3.1%. The results have been statistically weighted according to the most current education, age, gender and region Census data to ensure a sample representative of the entire adult population of the United States.