Americans See Economy Getting Better

More than a third (41%) of Americans in January said the economy is “getting better,” up from 35 percent in December and 38 percent a year ago, according to a new report from Gallup.

This level of optimism ties for the highest since Gallup Daily tracking began in January 2008.

Half or more of upper-income Americans (those making at least $90,000 annually), younger Americans (those aged 18 to 29), and Democrats say economic conditions are getting better. This makes them the most optimistic among key demographic groups.

A comparison of January 2011 with January 2010 reveals that upper-income Americans (+7) and those aged 65 years and older (+5) have increased their optimism the most. Men show a larger increase than women in year-over-year expectations, while independents and Republicans show an increase and Democrats’ optimism is essentially unchanged. Democrats and young Americans have held — but not added to — their high level of optimism.

Upper-income Americans are currently one of the most optimistic groups about the future course of the economy, and their optimism is up the most over the past year.
This likely reflects that Wall Street has reached highs not seen since mid-2008 and the government has extended the Bush tax cuts. It is likely also a positive sign for the economy in 2011 because these consumers have the disposable income to spend if they feel comfortable doing so.