International comparisons provide a useful perspective on economies that are increasingly interdependent. Gallup economic data recently collected in the United States, Canada, and Great Britain* show American consumers rate their country's economy more negatively than do their British and Canadian counterparts.
According to the April 2005 data, a majority of Canadians -- 56% -- continue to say Canadian economic conditions are excellent or good; this percentage is unchanged since December 2004. Britons have revised their opinions upward lately -- 52% now describe British economic conditions as excellent or good, compared with 44% in December 2004 (see "Economic Woes Fail to Shake Britons' Optimism" in Related Items). Opinion in the United States, however, has been sliding in recent months -- only 32% rated conditions as excellent or good in April this year, though assessments appear to be growing more positive in late May.
Americans may have more reasons to be nervous, as the U.S. economy has been flirting with a soft patch in recent months. Generally positive economic releases last week provided some reassurance, but oil prices have crossed the $50-per-barrel mark once again, reminding investors of the economy's precarious position. With the Fed likely to stay the course with interest rate increases, analysts are watching and waiting to see how the economy will react.
Looking to the Future
Despite differing views of the current state of the national economy, residents of the three countries generally give similar projections of the future economy. Thirty-eight percent of Canadians and Britons say their economy is getting better, compared with 35% of Americans. When the question was last asked in December, Britons were less optimistic (31% said the economy was getting better), Canadians (45%) and Americans (47%) were more optimistic than they are today.
Economic Problems
In each country, Gallup asked respondents to name the most important problem facing their country today. Americans and Canadians are more likely than their counterparts in Britain to mention economic problems in response to this question, with Americans slightly more likely to do so than Canadians. Among the most common economic responses from Americans are the general mentions of the economy, rising oil/fuel prices, and unemployment/jobs. Small percentages of Canadians mention a host of different economic issues, and complaints about the tax rate come out on top. Britons are less likely than Americans or Canadians to mention economic issues when asked to name the most important problem. Britons see immigration, crime, and healthcare as the top issues.
Bottom Line
In comparing economic confidence levels in the three countries, it's evident that Americans are less positive than Canadians and Britons. Other countries may be looking to America to keep their economies on the straight and narrow, but the eroding domestic confidence in economic conditions can hardly be reassuring to them.
*Results in the United States are based on telephone interviews with 1,010 national adults, aged 18 and older, conducted April 4-7, 2005. For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±3 percentage points. The survey was conducted by Gallup USA.
Results in Canada are based on telephone interviews with 1,006 national adults, aged 18 and older, conducted April 11-17, 2005. For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±3 percentage points. The survey was conducted by Gallup Canada.
Results in Great Britain are based on telephone interviews with 1,012 national adults, aged 18 and older, conducted April 5-18, 2005. For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±3 percentage points. The survey was conducted by Gallup UK.
