Americans Expect an Economically Rosier 2011 for the Country

If 2010 was the year the economic recovery fizzled, 2011 may be when the economy finally picks up.

That's the view of a majority of Americans, according to the latest poll on economic outlooks from Gallup. It finds a greater amount of optimism among people who earn more, live in the East or Midwest, and consider themselves Democrats.

But poll respondents were less optimistic about their own situations in the coming year, suggesting perceptions of what's happening to the country as a whole are playing a big role.

"At least some part of Americans' optimism about 2011 is based on their general perceptions of the overall economic climate rather than their own experiences and expectations about their personal financial situations," said Dennis Jacobe, Gallup's chief economist.

That more upbeat view of the new year had already taken hold in early December, before the lame-duck Congress, urged by President Barack Obama, made a deal to extend tax breaks for most of the country, Jacobe pointed out.

"Americans' optimism about the economy parallels their generally optimistic expectations for 2011. This tends to be the case across regions, incomes and party affiliation," Jacobe said.

And "recent Gallup Daily tracking results show that consumers only became increasingly optimistic about the economy as 2010 came to an end," he said.

According to the poll, 52 percent of Americans expect 2011 to be a better year for the economy than 2010, while 25 percent think it will be worse.

Among poll respondents earning $75,000 or more, 55 percent said it would be better and just 22 said worse. Among those earning less than $30,000, it was a 51 percent vs. 27 percent split.

Sixty-two percent of Democrats were optimistic about the 2011 economic prospects, compared with just 46 percent of Republicans.

And just 48 percent of Americans in the West saw a better year ahead, compared with 55 percent of Easterners and 56 percent of people in the Midwest.

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That optimism diminishes when respondents were asked about their personal financial situation, with only 44 percent predicting a better 2011, 16 percent saying it will be worse and 39 percent expecting the same as 2010.

"The potential fragility surrounding Americans' optimism as they look toward 2011 is reflected by consumers' view of their own financial situations," Jacobe said. "This may result from Americans being closer to their own financial situations and recognizing the relative stability of those situations."

The poll was conducted among 1,019 adult Americans Dec. 10-12. It has a margin of error of plus or minus 4 percentage points.