What do Americans think of the economy?

The share of American adults that feel that the economy is in good shape is increasing, though still lower than before the COVID-19 pandemic.

In 2023, 42% of American adults felt that their local economy was in good or excellent shape, up from 38% in 2022. The share of Americans assessing the state of the national economy as good or excellent rose from 18% in 2022 to 22% in 2023.

The Federal Reserve produces an annual report on the economic well-being of US households, allowing for comparisons over time.

How have Americans’ feelings about the economy changed?

In 2019, 50% of adults felt that the national economy was in either good or excellent shape, while 63% thought the same of their local economy. In 2020, those sentiments dropped to 26% on the national level and 43% locally.

Both figures hit low points in 2022 before ticking up in 2023.

What do people think about their local economies?

People’s perceptions of their local economies were relatively consistent across regions. In the Northeast, Midwest, South, and West alike, between 41% and 43% of adults thought their local economy was in either good or excellent shape.

This was a tick up for all regions from 2022, but none larger than the West, which increased six percentage points in a year.

While regional differences are limited, there is a larger disparity among responses from metropolitan and nonmetropolitan areas. In 2023, 44% of respondents in metropolitan areas thought the economy was doing at least good, a five-point increase from 2022. In nonmetropolitan areas, 29% of respondents thought so, down one point from the previous year.

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