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Gallup US Economic Confidence Index ECI

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Definition of 'Gallup US Economic Confidence Index ECI'

Gallup's Economic Confidence Index is based on the combined responses to two questions asking Americans, first, to rate economic conditions in the country today, and second, whether they think economic conditions in the country as a whole are getting better or getting worse.

The Index is computed by adding the percentage of Americans rating current economic conditions (("excellent" + "good") minus "poor") to the percentage saying the economy is ("getting better" minus "getting worse"), and then dividing that sum by two (2). The Index has a theoretical maximum value of +100 and a theoretical minimum value of -100. Values above zero indicate that more Americans have a positive than a negative view of the economy; values below zero indicate net-negative views, and zero indicates that positive and negative views are equal.

Gallup measures Americans' economic confidence nightly as part of Gallup Daily tracking, and reports the Index in three-day rolling averages daily as well as in weekly and monthly averages in Gallup's ongoing reporting. The daily reports are based on interviews with approximately 1,500 Americans, aged 18 and older; weekly averages are based on approximately 3,500 interviews; and monthly averages are based on approximately 15,000 interviews. From October 2000 through October 2011, the Index has correlated at a .95 level with the Reuters/University of Michigan Index of Consumer Sentiment and at a .82 level with the Conference Board's Consumer Confidence Index(R).

This is based on analysis of Gallup data from the first week of each month; the period most comparable to the Conference Board's data-collection period and significantly overlapping with the Thomson Reuters/University of Michigan field period. In contrast to the Conference Board and Thomson Reuters/University of Michigan reports that are issued at the end of the month, Gallup's daily and weekly reports are issued nearly in real time, providing the most timely insights available on consumer attitudes.

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