U.S. Economic Confidence Falls to Two-Year Low: 61% of Public Pessimistic About Future, Majority Discontent with Trump’s Economic Policies

Odaily Planet Daily reports that a recent poll shows that pessimism among the American public regarding the economic outlook continues to rise, with 61% of respondents expressing a negative view of the current economic situation and future trends, the highest level since December 2023, with only about a quarter of respondents holding an optimistic attitude. The survey indicates that most respondents attribute economic pressures to President Trump's economic policies. Regarding Trump's handling of economic issues, 60% of respondents expressed dissatisfaction, while only 38% approved, marking one of the lowest ratings for him in his political career.

Micah Roberts, a partner at Public Opinion Strategies, stated that the overall mood among voters is low, with the number of those expecting a worsening situation exceeding those who believe it will improve by a ratio of 41% to 29%. Market confidence is entering a low phase ahead of the midterm election cycle.

Meanwhile, rising living costs are forcing American consumers to cut back on spending. The survey shows that 47% of respondents are reducing purchases of essentials such as food and healthcare, an increase of 6 percentage points since April; about two-thirds of consumers are cutting back on non-essential spending like dining out.

Another study shows that grocery purchases in the U.S. in June fell by 1.8% year-on-year, a significant decline from the 0.1% growth in the same period last year.

Kurt Grichel, head of Bain's U.S. retail business, noted that a typical shopping trip costing around $300 in 2019 now may require $400, with the "shock" of rising prices affecting more groups, including high-income consumers.

Analysts point out that high food prices, high fuel costs, and cuts to certain social welfare expenditures by the Trump administration are collectively increasing pressure on consumers. The survey indicates that four out of five American consumers are trying to reduce spending, with over a quarter actively cutting back on food purchases, more than half of whom are opting for cheaper brands, and 49% reducing the quantity of items purchased.