Economic confidence is rising among Americans but it is rising far more rapidly among Democrats.
Despite low unemployment and persistently peppy economic growth, most surveys have shown Americans are not happy with the economy. Most likely, many are still feeling the sting of high inflation.
Although the inflation rate has come down from the four-decade highs hit a year-and-a-half ago, inflation is still running above the Fed’s target. And because the effects of high inflation are cumulative, prices are much higher than they would have been without the inflation explosion that has plagued the economy during the Biden administration.
Recent surveys, however, have shown some improvement in consumer sentiment. On Monday, a survey of consumers from Rasmussen showed economic confidence rising in February for the fourth straight month.
The Rasmussen Reports Economic Index climbed eight points to a reading of 110.0, up 8 points from January. In the prior month, it was up 4 points from December.
The index is well off the low of 78.6 in July 2022. The index hit its peak in January of 2020 at 147.8 during Donald Trump’s presidency but then tumbled under the weight of the pandemic. It recovered to a score of 126.4 by November of 2020 and then fell again when Biden was elected.
The gain in February was politically lopsided. Among Democrats, the share saying that the economy is excellent or good rose to 60 percent, a 12-point gain from the previous month. The share or Republicans with positive views of the economy is up but much less so, rising from 21 percent in January to 24 percent in February. Among consumers who say they are not affiliated with a major party, the share rose from 27 percent to 28 percent.
Overall, 38 percent of of American adults say the economy is good or excellent, a six point gain from the prior month. Those saying the economy is poor fell to 36 percent, down seven points.
Thirty percent of Americans now say the economy is improving, up two points from last month. Forty-eight say they expect the economy to get worse, down two points from January. Eighteen percent say they see things staying the same, down one point from the prior month. the economy is getting better, up two points from last month. Forty-eight percent (48%) expect a worsening economy, down two points from January.