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Americans Sharply Divided on Economic Outlook
Posted on March 19th, 2012 By: Alison
Is the economic recovery going to continue? Or will it flounder? According to a new poll from Bankrate.com America is sharply divided on this topic. Half say they are very or somewhat confident that the recovery will continue, while 48% say they are not too confident or not at all confident that the recovery will move forward. “The lack of conviction about a sustained economic recovery could become a self-fulfilling prophecy if it translates into less consumer spending,” said Greg McBride, CFA, senior financial analyst for Bankrate.com. “Consumers power 70 percent of economic growth, and a hesitant consumer delays recovery in the housing market and the overall economy.”
Financial Security Index dropped from 97.3 to 97 this month, which is the same as compared to March 2011. It has fluctuated in the past 12 months. Any reading below 100 indicates a lower level of financial security compared with the year before. According to the poll, 13% of respondents are very confident that economic recovery will continue. Thirty-seven percent are somewhat confident, 26% not too confident and 22% are not at all confident. Those in the latter category are mostly those ages 50 and up or those in households under $50,000.
Those that are more comfortable with their savings and debt are typically feeling better about the economy. They also typically have a higher net worth and an improved financial situation compared to a year ago. Those that are feeling worse about the economy are less comfortable with their savings and debt, have a lower net worth and a worse financial situation than a year ago.