CNBC survey shows U.S. economic pessimism deepens as Trump faces blame

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U.S. economic pessimism survey

Highlights

CNBC's All-America Economic Survey shows 61% of adults are pessimistic about the economy, the highest level since December 2023, while only 25% express optimism.
47% of respondents are reducing core purchases like food and medical care, and about two-thirds have cut non-essential spending, despite falling oil and gasoline prices.
Trump's approval on economic management stands at 40%, with 59% disapproval, and Democrats hold only a 4-point edge on congressional preference, signaling persistent polarization without a clear partisan shift.

Survey findings on prices and sentiment

As reported by CNBC, its latest All-America Economic Survey of 1,000 adults nationwide finds 61% of respondents are pessimistic about the current state of the economy and its future, the highest share since December 2023. Only 25% say they are optimistic, underscoring a gap between stronger market performance and household sentiment.

Concern is centered on the cost of everyday goods, especially food and other essentials. The survey says 47% of the public are cutting back on core purchases such as food and medical care, while about two-thirds are reducing spending on non-essential categories including dining out and entertainment.

Those responses come even as oil and gasoline prices decline and national retail sales show modest growth. The results suggest many households still do not feel relief from improving inflation indicators when making day-to-day spending decisions.

Political pressure and broader voter mood

Trump's approval rating stands at 40% in the survey, with 59% disapproving of his handling of the economy and inflation. The findings indicate economic frustration is translating into political pressure for the president, even though dissatisfaction does not produce a decisive advantage for Democrats.

The survey shows Democrats hold only a 4-point edge on the question of which party should control Congress. It also points to a sharply divided electorate that remains wary of more extreme candidates from either party, reflecting persistent polarization across economic and national issues.

On issue positioning, Democrats lead on concern over food costs, while Republicans retain stronger backing on immigration and border security. That split suggests voter anxiety over living costs is intense, but it is not yet reshaping the broader partisan balance in a clear way.

In our earlier article on falling U.S. Treasury yields amid cooling inflation data, we explained how softer price readings and steady labor-market indicators pushed benchmark borrowing costs lower. We also noted that renewed U.S.-Iran tensions lifted oil prices, keeping markets focused on the risk of energy-driven inflation and what it could mean for the Federal Reserve’s policy path.

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