According to the latest CNBC All-America Economic Survey, Americans are increasingly pessimistic about the economic outlook, with 61% expressing a negative view on the current state and future of the economy—the highest level of pessimism since December 2023, when the country was emerging from pandemic-era inflation [1]. Only 25% of respondents are optimistic about the economy now and for the future [1]. This widespread pessimism persists despite a surging stock market and lower gas prices, highlighting a disconnect between financial markets and public sentiment [1].
President Donald Trump's approval rating stands at just 40%, with particularly high negatives regarding his handling of the economy and the war with Iran [1]. The survey also indicates that Democrats hold only a modest 4-point edge over Republicans on which party should control Congress, reflecting a generally sour mood among the electorate as the midterm election cycle approaches [1]. "More voters expect things to get worse by a 41/29% margin, leaving the electorate in a distinctly sour mood heading into the midterm election cycle,'' said Micah Roberts, partner at Public Opinion Strategies, the Republican pollsters for the survey [1].
The survey of 1,000 adults nationwide (margin of error ±3.1%) found that 47% of the public report cutting back on essential items like food and medical care, up six points from April, while two-thirds are reducing purchases of non-essentials, up five points [1]. Americans are also reducing travel and increasing credit card usage compared to April [1]. The impact is more pronounced among lower-income households: 60% of those with incomes below $30,000 are reducing spending on essentials, compared to 35% of those with incomes above $100,000 [1].
Despite a recent decline in oil and gasoline prices, both Democratic and Republican pollsters for the survey agree that the modest drop is insufficient to offset the lingering effects of previous price surges. "People are still paying a lot more for stuff than they were a year and a half ago, two years ago, and that's recent enough in memory that it still hurts and it still drives a lot of anger,'' said Jay Campbell, partner at Hart Research, the Democratic pollster for the survey [1].
CONCLUSION
The CNBC survey reveals that Americans remain deeply pessimistic about the economy, with high levels of concern over rising prices and reduced spending on essentials, despite positive stock market performance and lower gas prices. President Trump's economic approval remains low, and both parties face a challenging political environment as economic anxiety persists. The findings suggest that recent improvements in market indicators have not translated into improved public sentiment.