Mood improves as Americans adjust to economy: poll

WASHINGTON (Reuters) - Americans are feeling slightly more optimistic this month as they come to grips with a struggling economy and an uncertain future, according to a Reuters/Zogby poll released on Wednesday.

The Reuters/Zogby Index, which measures the mood of the country, rose sharply to 95.5, up from 87.7 in March, as all 10 measures of public opinion used in the Index climbed.

Concerns about personal finances, job security and the direction of the country eased at least slightly, and positive ratings climbed for President George W. Bush, the U.S. Congress and economic and foreign policy.

Pollster John Zogby said the improved marks were mostly a sign of tempered expectations as the public settles in for a rocky ride on the economy.

"People are still in a bad mood. Political institutions still get very bad marks, and people feel we are clearly in a recession," Zogby said. "They are just digging in for now. They have made a mental adjustment."

The approval ratings for Bush inched up from 26 percent to 27 percent, and positive marks for Congress rose to a still-low 16 percent from 13 percent.

The number of Americans who believe the country is headed in the right direction climbed to 23 percent from 19 percent, and the number who feel very secure about their jobs rose to 48 percent from 40 percent.

"I wouldn't say this is a significant upward trend, it's more a settling in," Zogby said. "The responses are still negative, they just aren't as bad as last month."

MARKET UNCERTAINTY

The ratings followed another month of uncertainty in the stock market and a crisis in the home mortgage industry, along with testimony in Congress from top Iraq commander Gen. David Petraeus indicating he would stop U.S. troop withdrawals in July because of fragile security gains.

Positive marks for the Bush administration's foreign policy jumped to 24 percent from 18 percent, while approval ratings for economic policy climbed from 13 percent to 16 percent.

On another question not included in the index, more than two-thirds of Americans said the country is in a recession.

More Americans feel safe from foreign threats and more are proud of the United States, and the number of Americans confident their children will have a better life jumped from 61 percent to 65 percent.

The Index combines responses to 10 questions on Americans' views about their leaders, the direction of the country and their future. Index polling began in July, and that month's results provide the benchmark score of 100.

A score above 100 indicates the public mood has improved since July. A score below 100, like the one this month, shows the mood has soured since July.

The RZI is released on the third Wednesday of each month.

The telephone poll of 1,049 likely voters, taken Thursday through Saturday, had a margin of error of plus or minus 3.1 percentage points.

(Editing by Chris Wilson)

(For more about the U.S. political campaign, visit Reuters "Tales from the Trail: 2008" online at blogs.reuters.com/trail08/ )