(CNSNews.com) — A new survey shows that Americans are not optimistic about the economy as 2023 goes forward, with strong majorities saying inflation and interest rates will go up, and more people believing economic growth and the stock market will go down than think they will go up.
As Gallup reported, “Americans are more likely to predict negative rather than positive outcomes for five key aspects of the U.S. economy over the next six months. Higher inflation, unemployment and interest rates, as well as reduced economic growth and stock market values, are all expected.”
For instance, in the survey, Gallup asked, “Over the next six months, what do you think each of the following will do?” On interest rates, 74% of U.S. adults said they will go up (a lot or a little, but up).
On inflation, 67% said it will go up. On economic growth over the next six months, 43% said it will go down. For the stock market, 48% said it will go down.
On unemployment, 41% said it will rise and 29% said it will decline.
“The 67% of U.S. adults who now expect inflation will rise in the coming months, though down 12 percentage points from 2022, far outpaces the 20% who think it will decline and the 12% who say it will remain the same,” reported Gallup. “The current figure is similar to readings in late 2004 and 2005, although high inflation did not materialize at that time.”
On the political scale, slightly more Republicans (76%) than Democrats (72%) think interest rates will go up in 2023. On inflation, 78% of Republicans and 55% of Democrats expect it to rise.
Democrats are more optimistic on economic growth, 51% saying it will improve. Only 25% of Republicans said the same.
“High inflation, interest rate hikes, a rough end to 2022 for the stock market and recent big tech layoffs are all likely contributing to Americans’ pessimistic views of key U.S. economic conditions for the first half of 2023,” said Gallup.
“Despite the stock market’s strong start to the year, indications that inflation may be easing, better-than-expected economic growth in late 2022 and continued low unemployment, the public is bracing for a 2023 marked by worsening economic conditions,” reported the polling company.
For the survey, Gallup interviewed a random sample of 1,011 adults, aged 18 and older, living in all 50 states and the District of Columbia. To read the survey, click here.
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