Survey Finds Highest U.S. Economic Pessimism Since December 2023

The CNBC All-America Economic Survey found 61 percent of Americans pessimistic about the current state of the economy and the outlook for the future. That share marks the highest level recorded since December 2023. Only 25 percent expressed optimism.

Forty-seven percent of respondents said they are cutting back on essential items such as food and medical care, an increase of six points from the April survey. Two-thirds reported reducing purchases of non-essentials including eating out and entertainment, up five points. Americans also said they are reducing travel and using credit cards more than in April.

Sixty percent of those earning below $30,000 reported cutting essential spending, compared with 35 percent of those earning above $100,000. Pollsters noted that recent declines in gasoline prices have not offset the cumulative effect of earlier price increases. President Trump's net approval rating stood at 40 percent approve and 59 percent disapprove, one point worse than April.

Sixty percent disapproved of his handling of the economy while 38 percent approved. His rating on the economy reached the most negative level of his political career at minus 22. Sixty-three percent disapproved of his handling of the war with Iran and 68 percent disapproved of his handling of inflation and the cost of living.

Support for the military action against Iran fell to 48 percent from 53 percent in April, while 50 percent now say the action is not worth it. The Democratic Party held a four-point advantage on congressional preference, unchanged from April. Half of voters said they would be unlikely to support a Democratic Socialist candidate and 57 percent said they would be unlikely to support self-described MAGA candidates.