• by Jack Loechner , Staff Writer @mp_research, January 13, 2011

According to results of a new Gallup poll, twice as many Americans think the U.S. economy will be better rather than worse in 2011. Gallup analysis suggests this could represent either the generally optimistic nature of Americans, or it could reflect views of a recovering economy.

Americans living in the East and Midwest are a little more optimistic about the economic outlook for 2011 than those living in the South and West. Americans making $75,000 or more in annual income are slightly more optimistic than other Americans, and Democrats are considerably more optimistic than their independent and Republican counterparts.

2011 Expectation (vs. 2010) In Terms of the Economy (Percent of Group)
	Expectation % of Group
Group	Better	Same	Worse
National adults	52%	21	25
East	55	24	21
Midwest	56	25	18
South	51	20	27
West	48	17	32
$75K or more	55	23	22
$30K to $75K	52	21	25
Less than $30K	51	20	27
Republicans	46	23	31
Independents	50	23	26
Democrats	62	19	16
Source: Gallup, December 2010

Americans are somewhat less positive about their personal economic situations than the economy more broadly. Forty-four percent think their personal situation will be better in 2011, while 16% think it will be worse. Fewer Americans in the West are optimistic about their personal situations than in other regions. Americans making $75,000 or more in annual income are more optimistic than other Americans, and Democrats are slightly more optimistic than independents and Republicans.

2011 Expectation (vs. 2010) In Terms of Personal Financial Situation (Percent of Group)
	Expectation % of Group
Group	Better	Same	Worse
National adults	44%	39	16
East	44	37	18
Midwest	45	40	14
South	46	38	15
West	38	40	19
$75K or more	49	40	11
$30K to $75K	44	40	14
Less than $30K	42	34	24
Republicans	42	41	17
Independents	44	35	19
Democrats	46	42	12
Source: Gallup, December 2010

Americans' optimism about the economy parallels their generally optimistic expectations for 2011. This tends to be the case across regions, incomes, and party affiliation.

This overall increase in optimism was in place prior to the passage of new legislation at the end of the lame-duck Congress and the surge in spending at the end of the Christmas holiday. Recent Gallup Daily tracking results show that consumers only became increasingly optimistic about the economy as 2010 came to an end.

On the other hand, the potential fragility surrounding Americans' optimism as they look toward 2011 is reflected by consumers' view of their own financial situations. Americans express less optimism about their own situations, and this reveals more modest differences across regions, incomes, and party affiliation. This may result from Americans being closer to their own financial situations and recognizing the relative stability of those situations. In turn, it also suggests that at least some part of Americans' optimism about 2011 is based on their general perceptions of the overall economic climate rather than their own experiences and expectations about their personal financial situations.

Negative perceptions of current and future prospects for the US economy, however, declined during the week ended December 26, 2010, according to other recent Gallup data. The Gallup Economic Confidence Index consists of two measures: one involving Americans' perceptions of current economic conditions and the other involving their economic outlook. Last month's improvement reflects more optimism expressed in both measures.

43% of Americans called current economic conditions "poor." This was slightly fewer than the 45% average poor rating of the first three weeks of the month. The percentage of consumers saying economic conditions are "getting worse" also declined during Christmas week, to 57% from the 60% average of the first three weeks of December 2010.

Gallup.com reports results from these indexes in daily, weekly, and monthly averages and in Gallup.com stories. Complete trend data are always available to view and export.

For additional information about the Gallup study, please visit here.