U.S. Economic Confidence Hits Two-Year Low: 61% Pessimistic About Outlook, Majority Disapprove of Trump's Economic Policies

According to the latest poll released by CNBC, American pessimism over the economic outlook has intensified, with 61% of respondents expressing pessimism about the current economic conditions and future trajectory — the highest level since December 2023. Only about a quarter of respondents hold an optimistic view. The survey shows that a majority attribute economic pressures to President Trump's economic policies. Regarding Trump's handling of the economy, 60% of respondents expressed dissatisfaction, while only 38% approved — one of the lowest ratings on this metric in his political career.

Micah Roberts, a partner at Public Opinion Strategies, stated that the overall mood among voters is currently low, with those expecting the situation to worsen outnumbering those expecting improvement by 41% to 29%. Market confidence is entering a trough phase ahead of the midterm election cycle.

Meanwhile, rising living costs are forcing American consumers to cut spending. The survey found that 47% of respondents are reducing spending on necessities such as food and healthcare — up 6 percentage points from April. About two-thirds of consumers are cutting back on non-essential spending like dining out.

A separate study conducted by Bain & Company in collaboration with NielsenIQ showed that U.S. grocery purchases in June fell by 1.8% year-over-year, a sharp reversal from the 0.1% growth recorded during the same period last year.

Kurt Grichel, head of Bain's U.S. retail practice, noted that a typical grocery run that cost around $300 in 2019 may now require $400. The "sticker shock" from price increases is now affecting a broader range of consumers, including higher-income households.

Analysts point out that high food prices, elevated fuel costs, and the Trump administration's cuts to certain social welfare programs are collectively increasing pressure on consumers. The survey found that four out of five U.S. consumers are trying to reduce spending, with more than a quarter actively cutting back on food purchases. Among them, over half have switched to cheaper brands, while 49% are buying fewer items. (ibtimes)