US economic confidence hits two-year low: 61% pessimistic, majority dissatisfied with Trump's economic policies

According to the latest poll released by CNBC, American pessimism about the economic outlook continues to intensify, with 61% of respondents expressing pessimism about the current economic situation and future trends, the highest level since December 2023, and only about a 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, with only 38% approving—one of the lowest ratings for this indicator in his political career.

Micah Roberts, a partner at Public Opinion Strategies, stated that the overall mood among voters is currently depressed, with those expecting the situation to worsen in the future outnumbering those who believe it will improve by a margin of 41% to 29%. Market confidence is entering a trough phase before 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 said they are reducing purchases of necessities such as food and medical care, an increase of 6 percentage points compared to April; about two-thirds of consumers are reducing non-essential spending like dining out.

Another study jointly conducted by Bain & Company and NielsenIQ shows that U.S. grocery purchases in June decreased by 1.8% year-over-year, a significant weakening compared to the 0.1% growth in the same period last year.

Kurt Grichel, head of Bain's U.S. retail business, said that a routine shopping trip costing about $300 in 2019 might now require $400. The "shock effect" of price increases is affecting more groups, including high-income consumers.

Analysis points out that factors such as high food prices, high fuel costs, and the Trump administration's cuts to some social welfare spending are collectively increasing consumer pressure. The survey shows that four out of five American consumers are trying to reduce spending, with over a quarter proactively cutting back on food consumption. Among them, over half choose to buy cheaper brands, and 49% reduce the quantity of items they purchase. (ibtimes)