The combination of a possible government shutdown one week from today and the debt ceiling debate that will heat up soon afterward appears to be having an impact on the American mood if the latest survey from Gallup is any indication.
Though up considerably from the depths seen during the 2008 financial crisis and the debt ceiling crisis in the summer of 2011, Gallup’s economic confidence index is now at the lowest level since March when the “sequestration” budget cuts took effect.
Also today, the Conference Board reported that their index of consumer confidence dropped from 81.8 in August to 79.7 in September due to a decline in the expectations component that fell 4.9 points to 84.1, the lowest reading since May.
Note that the Gallup survey showed a similar deterioration in Americans’ long-term outlook for reasons that surely involve the debate in Washington over the budget and spending.
Source: Iacono Research