Gallup's US Economic Confidence Index Lowest Since December

Gallup's U.S. economic confidence index was minus 9 for the week ending May 3 -- its lowest weekly score since December. This reflects a six-point decline from the previous week, and is the largest week-to-week drop since last July. After falling from the high points in January and February this year, the index had barely moved in the previous six weeks. It had wavered between minus 3 and minus 4 since late March, before dropping last week. This included an average of minus 3 for all of April. And nearly all weekly readings in 2015 prior to now had been close to zero, with little week-to-week change. Even after last week's sharp decline, the index's latest figure is well above most readings Gallup recorded from 2008 to 2014.

The recent dip in Americans' economic confidence -- which is being dragged down largely by the lower economic outlook component -- is likely the culmination of a variety of economic factors. Though stocks rebounded by last Friday, the previous week had been fraught with market losses in the Dow and S&P. Meanwhile, the prices Americans were paying for gas increased in the latter half of April, with the U.S. Energy Information Administration reporting an increase of 17 cents per gallon over two weeks. Gallup has found that Americans' confidence in the economy is related to how much they pay for gasoline. Additionally, the recent report that the nation's GDP grew a lackluster 0.2 percent in the first quarter -- a disappointing figure compared with previous quarterly growth -- may have dampened consumers' economic hopes.