HMMMM. 49% of polled American believe the S&P is down this year

The Guardian released an “exclusive Harris Poll” showing some interesting results out of the US.

According to the polling, nearly three in five Americans wrongly believe the US is in an economic recession with the majority – nearly 50% – also believe the S&P index is down on the year.

What is evident is the survey found persistent pessimism about the economy. This does not bode well for President Biden as the November election draws near.

Some of the perceptions/misconceptions..

Perception of Economic Shrinking and Recession:

• 55% believe the economy is shrinking.
• 56% think the US is in a recession.
• Misconception: GDP has been growing, not shrinking.

Stock Market Misunderstanding:

• 49% believe the S&P 500 index is down for the year.
• Reality: The S&P 500 increased about 24% in 2023 and is up more than 12% this year.

Unemployment Rate Misconception:

• 49% believe unemployment is at a 50-year high.
• Reality: The unemployment rate has been under 4%, near a 50-year low.

Blame on Biden Administration:

• 58% blame the Biden administration for the perceived worsening economy.

Inflation Perception:

• 72% think inflation is increasing.
• Reality: Inflation is rising, but the inflation rate has significantly decreased from the post-Covid peak of 9.1%, now fluctuating between 3% and 4%.

Although Republicans are more convinced the US is in a recession at 67%, nearly 50% of Democrats also think the US is in recession. Again that is bothersome going into an election where it is often thought it is about the economy….

This article was written by Greg Michalowski at www.forexlive.com.