Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

It's a recession to 4 out of 5 Americans

A CNN/Opinion Research poll shows that the nation is becoming more convinced the economy is in a nosedive.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Catherine Clifford, CNNMoney.com staff writer

small_dollar_recession.cr.03.jpg
A new CNN/Opinion Research Corp. poll showed that 79% of respondents think the economy is in a recession.

NEW YORK (CNNMoney.com) -- A new poll shows that more Americans think the economy is in a recession.

A national CNN/Opinion Research Corp. poll released Tuesday found that 79% of respondents - nearly 4 out of 5 - believe the economy is now in a recession. That is up from 74% of Americans in March, 66% in February and 46% just a half-year back.

The poll results came from telephone interviews with 1,008 adult Americans conducted by telephone on April 28-30.

The National Bureau of Economic Research defines a recession on its Web site as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales."

But Americans are not quite as hung up on statistics and definitions - they tend to focus more on the job and housing picture around them when they talk about an economy in recession.

"You probably don't have 79% of economists saying that we are in a recession," said Jeoff Hall, chief U.S. economist for Thomson Reuters. The country has "lost 260,000 jobs (in the first 4 months of 2008), so for those people it is not a recession, it is a depression."

The high percentage of American consumers who have said that the country is in a recession could also be skewed due to the nature of the questionnaire. "When given a yes or no questionnaire to fill out, when they can't qualify it further, 'Yes,' consumers will say, 'my situation feels like a recession,'" said Hall.

A recession to Americans: Home and job

"The most tangible part to consumers is the labor market and the housing market," said Gus Faucher, the director of macroeconomics at Moody's Economy.com.

"We could not have had this recession without the problems in the housing market," said Faucher. He said the recession that he believes is under way started with Americans unable to make their mortgage payments.

Another factor in the poll may well be surging oil prices. Crude hit a record above $122 a barrel Tuesday, and while retail gas prices have eased the past few days, but consumers paying $4 or more a gallon in some places are still being pinched at the pump.

The increase in gas prices is having a "profound impact on consumer sentiment," said Hall.

A year ago, a gallon of gas cost on average $3.035, which is 19% lower than the average price of a gallon of gas now.

Faucher said that higher food and gas prices worsen the economic situation for consumers.

"We would have had a recession without gas, food price increases, but it adds to the economic weakness," he said. "That is another reason consumers are cutting back."  To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
Google's logos through the years Google changed its logo for the fifth time in 17 years this week. Here's what the old ones looked like. More
How much you should have saved for retirement right now Joe is 50 years old and makes $70,000 a year. He should already have $364,000 saved for retirement. Are you on track? More
The stock market's wild week in 6 pictures It was the wildest week in stocks in recent memory. Here's photos and CNNMoney's tweets of reactions to the panicked selling on Monday and Tuesday, which gave way to a mad buying scramble on Wednesday and Thursday. And then...a selloff on Friday again. More