New Citibank Survey Shows Rebound In Economic Optimism

A new nationwide survey issued today by Citibank finds consumer optimism about the economic future has rebounded seven points since August, with nearly half of American consumers (48 percent) expecting local business conditions to improve over the next 12 months.

Although consumers’ outlook improved from record lows, the survey, conducted by Hart Research Associates, found that the assessment of current local economic conditions remains negative and doubts persist that a bottom has been reached. Just 26% of consumers believe that the economic downturn has reached its bottom while a large majority, nearly seven in ten Americans (69 percent), continues to believe we have not yet hit bottom.

Despite the sluggish pace of recovery, a majority of Americans believe in the country’s future economic recovery. Fifty-nine percent of consumers believe America can regain its status as a global economic leader. Only 20 percent believe America has permanently lost its place as an economic leader. In another sign of budding economic optimism, 32 percent say they are confident their children’s generation will live better than they do, up from 27 percent in August.

“While consumers’ outlook on the economy today remains gloomy, it is encouraging to see their future outlook improving,” said Michelle Peluso, Global Consumer Chief Marketing and Internet Officer at Citi. “Citibank’s new survey shows a resilience among the vast majority of Americans, who believe the future will be better despite the tough economic conditions they are facing today, and see investing in education, innovation, and job creation as keys to recovery and long-term competitiveness.”

Citibank Economic Pulse: Up from Summer Lows

The Citibank Economic Pulse, a quarterly measure of public attitudes toward the economy, rose three points since August to -14, when it reached the lowest level in its two-year history. The largest gain in the Pulse, which combines eight survey questions into a single measure, comes from a 7 point improvement in the outlook for future local business conditions. The optimism was seen largely among higher-income consumers (those earning more than $150,000), who advance 13 points to 56 percent, and among middle-income consumers ($50,000-$75,000), who advance 14 points to 51 percent.