The first week of the partial federal government shutdown is already wreaking havoc on economic confidence.
Gallup’s Economic Confidence plunged to a mark of -34 this week, its lowest level since December 2011. Tuesday through Thursday’s three-day average is also down 14 points from the three-day average from last Friday through Sunday.
Here’s a look:
There are signs it could plunge further, as there’s no foreseeable solution to the shutdown and the debt-ceiling debates. House Republican leadership is preparing an offer on both budget impasses, but it appears to be going nowhere with Senate Democrats and President Barack Obama.
In the last, drawn-out fight over the debt ceiling in 2011, Gallup’s economic confidence level plunged to as low as -56.
“How much lower economic confidence might fall over the days and weeks ahead depends on what the Congress ends up doing in regard to both the current government shutdown and the looming debt ceiling deadline on Oct. 17,” Gallup editor-in-chief Frank Newport wrote.
“One glimmer of more positive news is the fact that after a similar plummet in confidence during the August 2011 debt ceiling crisis, confidence regained its previous footing within several months.”
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