Return to Transcripts main page

CNN Live At Daybreak

How Confident is American Public in Economy?

Aired August 21, 2001 - 08:37   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: A few months ago, Alan Greenspan testified on Capitol Hill, and he talked about how important consumers were to keeping the economy out of a recession.

So how confident is the American public these days? Well Gallup poll editor-in-chief Frank Newport has been investigating.

What did you find out, Frank?

FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Well, Carol, unfortunately, we're not seeing any signs that the American consumer is becoming more optimistic. They need that injection that we're looking for from the lowering of interest rates today from Alan Greenspan.

Look at the numbers. We had hoped to see in our August update -- we're doing this month by month -- some uptick, but we're just not seeing it.

Rate the economy. This is the percent who're rating it positively, the American consumer. We put January in there to show you how high it was. In May, it had dropped down. It was kind of level. Did it go back up, we asked ourselves this past weekend? No, it's actually down a little more.

And look at this, optimism or pessimism? We had actually been seeing a creeping up, Carol, of a little more optimistic attitude. Now here's that bottom line. Through July, 35 percent said the economy was getting better. This month, back down again. So, again, we're just not seeing any sign that the consumer is coming off that more negative procession.

Finally, rate your personal finances, we asked the American consumer, compared to last year, and look at this, the lines keep coming together, and now they cross. That's the bed line, the red one, is now a little ahead of the green line. In other words, more Americans now say they are worse off than a year ago than say they are better. And, Carol, that's important, because if consumers feel they are getting worse off, we think they're less likely to spend.

So all in all, hopefully, something that happens this afternoon from the Federal Reserve may have an impact on these numbers by the time we get our next update -- Carol.

LIN: All right, thanks, Frank.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com