U.S. Economic Confidence Improves in July

Gallup’s latest data shows a modest shift in U.S. economic sentiment. The Economic Confidence Index moved to -31 in July, up from the -45 low observed in May. While the national mood remains firmly in negative territory, the slight improvement marks a change in trajectory following months of decline driven by inflation and energy price concerns.

Public perception of current conditions shows specific movement. The share of adults who rate the economy as excellent or good climbed to 22% this month, up from 16% in May. Meanwhile, the proportion of Americans who describe the economy as poor dropped from 49% to 44%. Despite these gains, 67% of the population still believes the economy is worsening, indicating that broad skepticism persists.

The improvement is not uniform across all demographics. Sentiment gains among Republicans and independents provided the primary momentum for the index rise. Republicans saw their confidence score shift from +22 to +41, and independents improved from -58 to -38. In contrast, Democratic confidence remained relatively stagnant, moving only slightly from -80 to -76 over the same period.

While the index shows minor recovery, economic concerns continue to compete with other national issues. The government remains the most frequently cited problem by Americans, identified by 28% of respondents in July. Inflation and general economic troubles follow behind, though they have receded from their peaks earlier this year. Future shifts in these metrics remain tied to external pressures, including fluctuations in gas prices and international hostilities that impact consumer costs.