Confidence of Americans has taken the biggest dive over the first week of the government shutdown than it did over the Lehman’s debacle in 2008.
A Gallup economic confidence index fell 12 points to -34 and nearly matched the 15 point fall it saw on the Lehman’s bankruptcy.
The index nearly made it into positive territory in May/June as the economy looked to be on the mend. Since then confidence has been flushed down the toilet.
On a basis of whether the US economy is doing now and future expectations, 67% said the economy is getting worse while 28% said it was improving.
As we’re constantly pointing out, despite the calls that the economy is improving and not in a bad shape that feeling is not being transmitted from the streets. If the US doesn’t sort out the shutdown and debt problems then American confidence is going to flake out further.
