Market Digest

53% say the economy is in trouble, while 45% expect it to get worse, according to new StrategyOne survey

Despite some signs and predictions that the U.S. economy is rebounding, most Americans’ opinion of the economy has remained steady since the summer, with 53% saying they believe the economy is in trouble, and 45% feeling the economy has not yet bottomed out and will still get worse (vs. 49% in July). The survey conducted by StrategyOne also indicates that the recession is taking an emotional toll, with two-thirds of Americans saying the recession has significantly changed their general outlook on life.

When asked to describe the current state of the US economy, 41% say it is in a deep recession and another 12% believe the economy is in a 1930′s-style economic depression. Just over one-third (34%) say the economy is in a mild recession, while only 5% of Americans say the economy is doing fine.

“Despite some indications suggesting the economy is strengthening, Americans are as concerned as they were in July that the current slowdown will become a protracted problem that doesn’t have an immediate end in sight,” said Bradley Honan, Senior Vice President of StrategyOne. “With consumer spending accounting for two thirds of the economic activity in the country, these feelings could turn into a self-fulfilling prophecy.”

Less than one-third (30%) today say the economy has bottomed out and is getting better, with 28% feeling that way in July 2009. Lastly, while 18% today believe the economy is at the bottom and is getting neither better nor worse, 21% felt that way in July.

To the extent some believe the economy is recovering, it is a feeling that is particularly pronounced among high income earners and households.

Only 25% of those living in households making less than $50,000 annually believe the economy has hit bottom and is getting better. By contrast, 36% of those in households making $100,000 or more report the economy has hit bottom and is now getting better.

Regardless of current sentiment about where the economy stands today, it is clear that the downturn has altered our national outlook and psyche. Thirty percent report that the current recession has changed their general outlook on life very significantly and another 38% say it has done so somewhat significantly. By contrast, just 29% report that the economic recession has either not very significantly or not significantly at all changed their general outlook on life.

“There clearly will be psychological implications from the economic downturn in terms of how consumers behave,” said Honan. “How quickly businesses adapt to these new realities will go a long way towards determining how fast we recover economically from this most recent recession.”

Question Text & Data:

Now thinking about the nation’s economy, do you believe the economy . . .

Answer July 2009 Nov. 2009
—— ——— ———
Has already hit bottom and is GETTING BETTER 28% 30%
——————————————– — —
Is at bottom and NOT getting BETTER OR WORSE 21% 18%
——————————————– — —
Or, has not yet bottomed out and WILL GET WORSE 49% 45%
———————————————– — —
Don’t know (Volunteered Answer Choice) 2% 7%
————————————– — —

Which of the following best describes your view of the US economy. Is it . . .

Answer Nov. 2009
—— ———
Doing fine 5%
———- —
In a mild recession 34%
——————- —
In a deep recession 41%
——————- —
In a 1930′s style economic depression 12%
————————————- —
Don’t know (Volunteered Answer Choice) 8%
————————————– —

How significantly has the current economic recession changed your general outlook on life?

Answer Nov. 2009
—— ———
Very significantly 30%
—————— —
Somewhat significantly 38%
———————- —
Not very significantly 15%
———————- —
Not significantly 14%
—————– —
Don’t know (Volunteered Answer Choice) 3%
————————————– —

Survey Methodology:

StrategyOne conducted 1,005 telephone interviews among a representative sample of Americans. The overall margin of sampling error is +/- 3.09%. Interviews were conducted between November 17 and 22, 2009. Statistical weights were designed from the United States Census Bureau statistics.

Source: StrategyOne