Americans are showing the highest economic optimism in nearly two decades, according to a Gallup poll conducted in January. About 53% believe the U.S. economy will grow in the next six months—the highest level since 2005. Similarly, 61% expect stock prices to rise, marking a record high since Gallup began tracking this sentiment in 2001.
Inflation concerns are easing, with only 52% predicting higher inflation, the lowest since 2003, while a record 33% expect inflation to drop. Additionally, 41% foresee lower interest rates, surpassing the 35% who anticipate an increase.
This optimism aligns with Federal Reserve projections, which estimate 2.1% GDP growth in 2025, a decline from 2.8% in 2024 but above the long-term trend. Inflation is expected to fall to 2.5%, while unemployment may rise slightly from 4.1% to 4.3% by year-end.
However, views on employment remain divided—38% anticipate rising unemployment, while an equal share expects a decline. Political affiliation significantly influences economic sentiment: 78% of Republicans foresee improvement under a potential GOP presidency, compared to only 21% of Democrats.
Despite these political differences, optimism in the stock market remains widespread across demographics, including age, gender, income, and education. Gallup’s senior editor Jeffrey Jones notes that rising expectations are primarily driven by Republicans but reflect a broader sense of economic confidence.
Also read: U.S. Labor Costs Rise Marginally in Q4, Easing Fed Concerns
