Economic Optimism Recovers From Covid-Era

Optimism about the U.S. economy registered its biggest bounce in more than a year in December, after sinking to COVID-era lows a month earlier.

The IBD/TIPP Economic Optimism Index, an early monthly read on consumer confidence, jumped 4.5 points to 48.4. Still, the index remained in modestly pessimistic territory. Readings above the neutral 50 level reflect optimism.

The big swing in sentiment reflects volatility in economic conditions. Americans are navigating a surge in inflation, pandemic-related ups and downs, and a lapse of fiscal stimulus. Yet the broad economy and job market appear to be striding ahead at a good clip.

The IBD/TIPP Economic Optimism Index is a composite of three major sub-indexes. They track views of near-term prospects for the U.S. economy, the outlook for personal finances and support for government economic policies.

In December, the six-month U.S. economic outlook index climbed 4.2 points to 42.8, bouncing above November’s deeply negative reading.


The federal economic policies sub-index surged 6.4 points to 47.5, after sinking to a five-year low in November.

The personal finances sub-index rose 3 points to 54.9, after sinking to a 14-month low in November amid inflation worries.

The IBD/TIPP Economic Optimism Index is a composite of three major sub-indexes. They track views of near-term prospects for the U.S. economy.