In 2011, American museums reflected the overall state of the U.S. economy, with a high level of economic stress and continued belt-tightening but also the signs of potential recovery. For the third year in a row, a majority of museums report increased attendance but moderate to very severe economic stress. Yet budgets are shrinking at a slower pace, museums are starting to hire new workers, and spending on K-12 education remains a high priority. Museum leaders are optimistic that economic conditions will improve in 2012, while recognizing that the field continues to face serious economic challenges.