A quick surge of optimism after Bin Laden was killed has completely vanished according to a recent Gallup Poll. Please consider U.S. Economic Confidence Plunges in Early June

A sharp deterioration in the jobs outlook and six straight weeks of Wall Street declines sent Americans’ confidence in the U.S. economy plunging to an average of -35 during the week ending June 12 — a decline of nine percentage points from two weeks ago, and six points worse than it was in the same week a year ago. Economic confidence is now approaching a 2011 weekly low.

Economic confidence reached its peak so far this year at -18 in February and then generally declined through the week ending April 24, when it reached -39 as gas prices surged and economic activity slowed. Economic confidence improved to -25 during the week after Osama bin Laden’s death and coincident with the “rally effect” in President Obama’s approval rating. However, Americans have become more pessimistic about the economy in early June, with confidence reverting to late April levels.

Economic Expectations Worsening

Thirty percent of Americans said the U.S. economy is getting better last week — down from 37% during most of May and near the low for the year. This is five points below the reading for the same week in 2010.

Look for unemployment to rise as the economy spirals towards another recession.

Mike “Mish” Shedlock
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