Despite some relatively good news earlier this year, Americans remain deeply worried about the economy, according to a new Harris Poll survey provided exclusively to MarketWatch.
The poll, conducted this month, found that 87% of respondents were concerned about the economy and inflation — a figure that has held steady over the past year through all its financial ups and downs, according to Harris Poll officials.
Economic concern is “a big thing and it’s overtaken COVID as the main driver of anxiety,” said Harris Poll chief executive Will Johnson.
For many Americans, it may not matter that economic trends are improving, Johnson said, because “inflation is here, it’s real and [you’re] seeing it everywhere.”
The economic data for January did show some positive news on several fronts.
In January, 517,000 new jobs were added — more than double what was expected — and the unemployment rate dipped to 3.4%, the lowest figure since 1969.
And the annual rate of inflation, using the consumer-price index as the gauge, declined in January for a seventh consecutive month, reaching an annual rate of 6.4%. In June, the figure was 9.1% — a 40-year high. The rate measures the cost of goods and services compared with the previous year.
While that’s an improvement, the 6.4% rate is still far higher than the 2% inflation rate that the Fed believes is best for the economy.
The poll also found that 50% of Americans say their financial situation is getting worse. As bad as that may seem, it’s an improvement over what the poll showed last June, when 64% said their situation was worsening, Johnson noted.
In addition, the new Harris Poll survey found that 80% of Americans are concerned about a potential U.S. economic recession and 46% fear they may lose their job.
Still, another key barometer, the University of Michigan’s consumer sentiment index, showed that Americans may be starting to feel better about the economy.
The Michigan index, which is based on answers to various financial-related questions, rose in February for the third consecutive month, increasing by 2.3 index points. The Michigan team noted, however, that sentiment is still 14 index points lower than it was two years ago.