PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

GALLUP: Economic Confidence Turns Positive for First Time During Pandemic

By at 26 April, 2021, 2:31 pm

by RAYMOND J. KEATING-

In so many ways the pandemic has been a tough rode, to say the least. And that includes on the economic front. But there’s a nice piece of news from Gallup – that is, economic confidence moved into net positive territory for this time during this pandemic.

As noted in the following chart from Gallup, the organization’s Economic Confidence Index moved to a measure of +2 in April 2021; the first time it registered positive since early March 2020. The April measure also was nine-point improvement from March 2021.

Consider other key points from the survey:

● “28% describe current economic conditions as either excellent or good, while 26% say they are poor. Last month, 23% rated current conditions as excellent or good and 31% as poor.”

● “While ratings of the current economy have been better in some recent months than they are now, Americans’ belief in where the economy is headed is more positive than at any time during the pandemic. Currently, 47% of U.S. adults believe the economy is getting better and 46% worse, the first rating that was not more negative than positive since March 2020.”

The improving optimism as illustrated in this survey is most welcome. And while considerable negatives still remain in these and other data, the move in the right direction is clear.

Of course, most of this is tied to vaccines, and improvements in terms of further openings and engagement in the economy. But challenges remain, and unfortunately, a variety of proposals to increase taxes, regulations and government spending will work in the opposite direction, that is, dampening recovery, as opposed to policies that would incentivize entrepreneurship, investment, and growth.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

 

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