U.S. economic confidence drops to a two-year low: 61% of the public pessimistic about the outlook, most respondents dissatisfied with Trump’s economic policies

Odaily reported that a recent poll published by CNBC shows pessimism about the economic outlook among Americans continues to rise. 61% of respondents said they feel pessimistic about the current economic situation and future trends, marking the highest level since December 2023, with only about a quarter of respondents expressing optimism. The survey shows most respondents attribute economic pressure to President Trump's economic policies. Regarding Trump's handling of economic issues, 60% of respondents said they are dissatisfied, while only 38% approve—one of the lowest ratings in his political career.

Micah Roberts, partner at Public Opinion Strategies, stated that voter sentiment is currently low overall. The number of people expecting the situation to worsen outnumbers those expecting improvement by a ratio of 41% to 29%. Market confidence is entering its low point ahead of the midterm election cycle.

Meanwhile, the continuously rising cost of living is forcing American consumers to cut spending. The survey shows that 47% of respondents are reducing purchases of essentials like food and medical supplies, up 6 percentage points from April; about two-thirds of consumers are cutting back on non-essential expenses like dining out.

Another study jointly conducted by Bain & Company and NielsenIQ reveals that US grocery purchases in June declined 1.8% year-on-year, a marked contrast to the 0.1% growth during the same period last year.

Kurt Grichel, head of Bain's US retail business, said that a single routine purchase worth around $300 in 2019 now may cost $400. The "shock effect" of rising prices is affecting more groups, including high-income consumers.

Analysis points out that high food prices, elevated fuel costs, and the Trump administration's reductions in some social welfare spending are collectively increasing consumer pressure. Surveys show four-fifths of US consumers are trying to reduce expenses, and more than a quarter are actively cutting food consumption; over half have chosen to buy cheaper brands, and 49% are buying fewer products. (ibtimes)