Expectations for Economy and Jobs Fell to Lowest Point in January

ROCHESTER, N.Y.-(Business Wire)-February 3, 2009 - The Harris Poll® conducted just before President Obama was inaugurated found that public expectations for the economy, the job market and personal finances had fallen to new lows. Only 11% of all adults reported that their household’s financial condition had improved compared to a year ago, down from 14% last November and 31% last July. Fully 59% said it had become worse. Only 20% of adults expected that their financial situation would be better in six months times, down from 24% last November and 36% last July. However, a plurality (48%) believed it would remain the same. In general, the survey found more optimism in the South than in the other regions.

These are some of the results of The Harris Poll of 2,848 U.S. adults surveyed online between January 12 and 19, 2009 by Harris Interactive®.

Other interesting results of this survey include:

While most people (72%) rated economic conditions in their region as bad, only 32% expected that their households’ financial situation would get worse in the next six months.
When asked about their feelings on the economy in their region in the next six months, a 53% majority said they were pessimistic and 23% said they were optimistic.
Only 6% of adults described the job market in their regions as good, while about three quarters (76%) described it as bad.

In replies to most of the questions, a somewhat smaller proportion of adults in the South gave pessimistic responses than did people in other regions. For example:

57% of Southerners, compared to 63% of people in the West and 60% in the Midwest, said their households’ financial situation had become worse.
28% of Southerners, compared to 33% or 34% in the other regions, expected their households’ financial situation to get worse in the next six months.
50% of Southerners, compared to 54% to 57% in other regions, said they were pessimistic about the economy over the next six months.
45% of Southerners, compared to 54% of people in the East and 53% in the Midwest, expected the job market in their regions to get worse in the next six months.

So What?

This survey raises as many questions as it answers:

1) Why, given the extraordinarily high expectations people have for President Obama, were expectations so low immediately before his inauguration? Did they reflect a recognition of how hard it will be to get the economy moving forward?

2) Will President Obama and his high-profile economic team be able to change these gloomy expectations? And if so, how quickly?

3) As pessimism begins to decline, at what point do consumers start to spend, and help to get the economy moving?

Methodology

The Harris Poll^® was conducted online within the United States January 12 and 19, 2008, among 2,848 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online. Full data tables and methodology are available at www.harrisinteractive.com

These statements conform to the principles of disclosure of the National Council on Public Polls.

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About Harris Interactive

Harris Interactive is a global leader in custom market research. With a long and rich history in multimodal research, powered by our science and technology, we assist clients in achieving business results. Harris Interactive serves clients globally through our North American, European and Asian offices and a network of independent market research firms. For more information, please visit www.harrisinteractive.com.

Harris Interactive Inc. 2/09

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