U.S. Economic Confidence Declines Amid Partisan Shifts

Economic confidence in the U.S. has dipped in recent months, with Gallup’s January 2025 Economic Confidence Index falling to -19 from -14 in December, although it's an improvement from -26 prior to the recent presidential election. This decline reflects a growing partisan divide, as Republican confidence has increased significantly while Democratic confidence has dropped sharply. Currently, 26% of Americans view economic conditions as 'excellent' or 'good', with 40% rating them as 'poor'. Meanwhile, the Conference Board's confidence index also showed a decline, suggesting deteriorating expectations for the economy. In Canada, small business confidence has similarly decreased, affected by uncertainty around U.S. tariffs and domestic tax policies. Across both nations, businesses and consumers are grappling with low demand and economic instability, complicating their outlooks and decision-making.