(04/19/11) -

Domestic Economy in Bad Shape for Four-in-Five Americans

Paying down debt remains an important issue for respondents, who foresee more expensive gas and groceries.

Few Americans are expressing confidence in their country’s current economic standing, and three-in-ten expect a further decline, a new Angus Reid Public Opinion poll has found.

In the online survey of a representative national sample of 1,014 American adults, 83 per cent of respondents rate the economic conditions in the United States as “very poor” or “poor”, down two points since November 2010. Only 14 per cent of Americans (+2) believe the domestic economy is in good shape at this point.

Half of Americans (52%, -4) say that their own financial situation is currently “very poor” or “poor”, while two-in-five (45%, +3) describe it as “good” or “very good.” Three-in-ten respondents (30%) expect the national economy to decline in the next six months, while one-in-five (20%) believe it will improve.

Concerns, Inflation and Debt

The main economic concerns that were evident last year are still affecting the mood in 2011. Almost half of Americans (46%, =) are still concerned about themselves or someone in their household becoming unemployed, while about two-in-five have worried frequently or occasionally about the safety of their savings (44%, +1), the value of their investments (43%,=) and their ability to pay their mortgage or rent (38%, -2). In addition, one-in-four Americans (26%, -5) are concerned about their employer running into serious financial trouble.

More than four-in-five Americans expect the price of gasoline (88%) and groceries (84%) to go up in the next six months, while half (50%) are predicting that a new car will be more expensive. A third of Americans (35%) think a new TV will be costlier, while only one-in-four (25%) foresee higher real estate prices.

If Americans were given $1,000 to spend on anything, they would allocate the biggest amount of cash to paying down debt ($283), followed by covering day-to-day expenses ($245), savings ($231), spending on personal items ($69), setting aside for a big purchase ($58), spending on a holiday ($44), investing in individual stocks ($38), and investing in mutual funds ($32).

Analysis

The first economic panorama of 2011 shows some remarkable similarities with the surveys conducted last year. The level of confidence in the American economy remains below the 20 per cent mark, and few respondents are ready to predict a recovery. While there is a slight increase in the personal finances question, Americans overwhelmingly expect to face higher prices at the pump and the grocery store.

Full Report, Detailed Tables and Methodology (PDF)

CONTACT:

Mario Canseco, Vice President, Angus Reid Public Opinion
+877 730 3570
mario.canseco@angus-reid.com

Methodology: From April 13 to April 14, 2011, Angus Reid Public Opinion conducted an online survey among 1,014 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.