Anger over economy drops to record low
CHICAGO (September 5, 2013)—The Chicago Booth/Kellogg School Financial Trust Index issued today finds that, as home prices rise across the U.S., 51 percent believe property values will continue to increase over the next 12 months.
The report also finds that only 39 percent are angry over the economy—down from 50 percent since last quarter.
“This is the lowest point we’ve seen in the measure of anger since we started tracking in 2008,” said Paola Sapienza, co-author of the Financial Trust Index and the Merrill Lynch Capital Markets Research professor of finance at the Kellogg School of Management at Northwestern University. “In five years it has fluctuated as high as 63 percent but never below 47 percent, so this really is a significant drop.”
Despite positive indicators, overall trust in the economy fell to 24 percent, a three-point slip since last quarter.
“The primary factor in this decrease is attitudes toward the stock markets and banks,” said Luigi Zingales, co-author of the Financial Trust Index and Robert C. McCormack Professor of Entrepreneurship and Finance and the David G. Booth Faculty Fellow at the University of Chicago Booth School of Business.
The Chicago Booth/Kellogg School Financial Trust Index measures public opinion over three-month periods to track changes in attitude. Today’s report is the 19th quarterly update and is based on a survey conducted in June 2013.
ABOUT THE SURVEY: On a quarterly basis, the Financial Trust Index captures the amount of trust that Americans have in the institutions in which they can invest their money. The survey is conducted by Social Science Research Solutions (SSRS) as part of their weekly national telephone survey, EXCEL. In the most recent wave, a total of 1,005 individuals were surveyed by live interviewers (not IVR) June 12 to June 20, 2013. The institutions considered in the survey are banks, the stock market, mutual funds and large corporations.
MORE INFORMATION: To learn more about the Chicago Booth/Kellogg School Financial Trust Index visit www.financialtrustindex.org. To arrange an interview contact Jeff Brennan or Allan Friedman at the contact information listed above. To learn more about the Kellogg School of Management at Northwestern University, visit www.kellogg.northwestern.edu. To learn more about the University of Chicago Booth School of Business, visit www.chicagobooth.edu.
Kellogg School of Management
The University of Chicago Booth School of Business