Last spring, Americans thought they had turned the economic corner. Now they are not so sure. Indeed, consumers are feeling noticeably less confident about the economy than they were in April, and they don’t believe things are going to get better any time soon. Job insecurity is rising, and optimism about the economy—defined as the ability to make ends meet—has slumped to 23 percent, down from 35 percent in March 2011 and 41 percent in September 2009 (exhibit). That’s even lower than it was at the deepest point of the recession.
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