A new nationwide survey issued today by Citi, and conducted by Hart Research Associates, shows that nearly two-thirds of Americans (62 percent) believe the economy has yet to hit bottom. This represents a 3 point decline from March, when 59 percent said we have a long way to go, and a return to the level measured in September (63 percent). According to the survey, just one-third (33 percent) believe the economy has hit bottom, even though Commerce Department data indicates the U.S. economy resumed growing in 2009’s third quarter.

 

In addition, the data reveals that, as we pass the halfway point of 2010, Americans’ expectations for when the economy will stabilize for their households have slipped quite far into the future, with 62 percent believing it will be at least two or three years, if not longer, and more than one quarter (28 percent) believing it will be four or more years until the economy stabilizes for their household.

 

At the same time, however, Americans’ views on current economic conditions, as well as their outlook on their own personal financial situations, are improving or holding steady.

According to the data:

Americans’ views on local employment opportunities, however, remained weak, with 85 percent reporting opportunities as only fair (36 percent) or poor (49 percent). In a measure of potential consumer demand, 62 percent of Americans believe that, in the current environment, it is only a fair (30 percent) or poor (32 percent) time to make a major household purchase, up from 61 percent (27 percent and 34 percent, respectively) in March.

 

“Clearly, the mood of Americans has been heavily influenced by the unemployment numbers here at home and the news of economic woes in Europe,” said Jonathan Clements, Director of Financial Education at Citi Personal Wealth Management. “And yet, if you dig deeper, consumers are actually feeling a bit better about their own finances and the local economic outlook. The big question is, could the gloomy news become a self-fulfilling prophesy, prompting consumers to restrain their spending, thus hurting the economic recovery?”

 

Americans of all ages and income levels are struggling with debt. The survey found that, while no one category of debt presents a major problem to more than about a tenth of U.S. families, as many as 25 percent responded that there is at least one category of debt that is a major challenge or is becoming unmanageable.

Clements added, “Given the sluggish economic recovery, it is no surprise that Americans remain conservative with their spending, saving and summer vacation plans. Americans’ fiscal discipline is admirable. Still, lower consumer spending may slow the economic recovery.”

 

Despite the current economic challenges, Americans remain remarkably optimistic. The survey found that 53 percent of Americans believe they are living the American dream and nearly three in four (73 percent) say they are either living the dream now or expect to live the dream in the future. Older Americans lead the way in responding they are currently living the dream, while young Americans remain hopeful.

By 56 percent to 24 percent, a majority of Americans believe that the American dream is more defined by family, faith and freedom than it is defined by material goods or financial elements such as housing, income or lifestyle.

 

Citi conducted this nationwide survey as part of its ongoing effort to better understand changes in the needs of the consumers and communities the company serves.