Despite a year full of doubt and worry, Americans are feeling stronger about the economy as the recession that was predicted to happen in 2023 never showed its face.
According to the latest survey from the University of Michigan, 83.3% of Americans are confident in the current economy and its direction, up 21.6% from a year ago and the highest level since July 2021.
The survey’s findings marked a massive jump in confidence from when the poll was run in December. In fact, pollsters shared that on a two-month basis, the results showed the largest increase since 1991.
“Consumer views were supported by confidence that inflation has turned a corner and strengthening income expectations,” Joanne Hsu, the survey’s director, told CNBC.
Even more impressive, both Democrats and Republicans are feeling better about the economy at a time when political division remains increasingly high.
“Democrats and Republicans alike showed their most favorable readings since summer of 2021,” Hsu said. “Sentiment has now risen nearly 60% above the all-time low measured in June of 2022 and is likely to provide some positive momentum for the economy.”
The survey found that consumer sentiment is at 78.8% amidst falling gas prices and solid market gains. Recent wins like paying less at the pump have played an important role in changing how Americans view the economy.
Still, much remains to be seen about the year ahead, with the Federal Reserve keeping interest rates at their 22-year high until the bank sees evidence inflation is down and staying where it’s at.