Economic Confidence Tumbles To Lowest Level Since July

Economic confidence slumped in October, partially undoing the climb in confidence seen in the previous three months, the most recent Gallup poll shows.

Gallup’s economic confidence index fell to a reading of minus 45, the lowest since July. A month earlier it rose to minus 39, the third straight month of gains.

The index hit a low in June of minus 58.

The all-time low was minus 72 in 2008.

Prior to the pandemic, the economic confidence index stood at positive 41 in February 2020. It promptly plunged to minus 32 in April. The index briefly moved into low single-digit positive territory in the spring of 2021, only to fall again because of inflation concerns.

The latest slide likely reflects fears of a recession next year. The government said inflation declined in October to an annual rate of 7.7 percent.