U.S. economic confidence hits two-year low: 61% pessimistic, majority disapprove of Trump's economic policies

According to the latest CNBC poll, American pessimism over the economic outlook continues to intensify, with 61% of respondents expressing pessimism about the current economic conditions and future trajectory — the highest level since December 2023, and only about one-quarter of respondents holding an optimistic view. The survey shows that a majority of respondents attribute economic pressure 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 this indicator in his political career.

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

Meanwhile, persistently rising living costs are forcing U.S. consumers to cut spending. The survey found that 47% of respondents reported reducing purchases of necessities such as food and medical care, up 6 percentage points from April; about two-thirds of consumers are cutting back on non-essential spending like dining out.

Another study conducted by Bain & Company in collaboration with NielsenIQ showed that U.S. grocery purchase volume in June declined 1.8% year-over-year, a significant weakening from the 0.1% growth recorded during the same period last year.

According to Kurt Grichel, head of Bain's U.S. retail practice, a routine grocery trip costing around $300 in 2019 may now require $400, and the "sticker shock" of price increases is affecting a broader range of consumers, including high-income earners.

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