WASHINGTON, D.C. — Gallup’s Standard of Living Index reached a new high of +50 in December, the best score found in seven years of tracking the index. Americans’ improved perspective on their personal standard of living comes as they spend more money and begin to view the national economy positively.

The index has labored through a long recovery from its recession-era slump, with lows of +14 in both October and November of 2008, when the global economic crisis erupted. But the latest ratings exceed even pre-crisis levels in 2008, illustrating a remarkable turnaround in how Americans view their standard of living.

The year 2014 started off with better standard of living readings than practically all other monthly readings before, with a +41 in January and February. From March to November, it improved further, but remained in a narrow range of +44 to +47. The +50 rating for December brings the index to an unprecedented level in its seven-year trend.

Gallup’s Standard of Living Index is a composite of Americans’ responses to two questions: one asking whether they are satisfied with their current standard of living, and the other asking whether their standard of living is getting better or worse. The index has a theoretical maximum of 100 (if all respondents say they are satisfied with their standard of living and say it is getting better) and a theoretical minimum of -100 (if all respondents are dissatisfied with their standard of living and say it is getting worse). The current score of +50 indicates Americans are quite positive about their standard of living, but even at its lows in the fall of 2008, Americans evaluated their standard of living positively overall.

Both dimensions of the index have improved by roughly five points over the past year – however, since the nadir of these perceptions in 2008, people’s outlook for their standard of living going forward has improved much more than their current satisfaction with it.

Four in Five Americans Satisfied with Their Current Standard of Living

A consistent majority of Americans have expressed satisfaction with their standard of living over the past seven years, ranging from 69% in late 2008 to 81% today. However, after fluctuating in an even narrower seven-point range from 2009 through 2013, it rose from 76% at the end of 2013 to 81% at the end of 2014.

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http://www.gallup.com/poll/180449/standard-living-index-climbs-highest-years.aspx?

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