Americans’ economic sentiment hits record low despite strong GDP and jobs
9 reported1 unconfirmed
A new analysis from Vox reports that American consumer sentiment has reached its lowest level in the postwar era, according to the University of Michigan's monthly survey, which has been conducted since 1952. The survey's result from last month was the lowest level ever recorded. A CNN survey this week found that only 47 percent of respondents agreed that most people can get ahead if they work hard, down from 67 percent a decade ago. President Donald Trump's approval ratings on the economy hit new all-time lows in recent weeks, with CNBC showing 39 percent and CNN showing 30 percent. These negative feelings persist despite GDP growth and jobs numbers looking decent or good, and the stock market remaining near all-time highs. The article notes that 76 percent of respondents in CNN's survey cited affordability as the biggest economic problem facing their family. New data released Tuesday showed inflation at its highest level in three years, partly due to higher energy prices from the Iran war, and inflation outpacing wage growth for the first time in three years. Producer prices, a measure of wholesale inflation, rose the most since 2022, which can signal future price increases for consumers.
What’s reported
University of Michigan consumer sentiment survey recorded its lowest level ever last month, dating back to 1952.
CNN survey found 47 percent of respondents believe most people can get ahead if they work hard, down from 67 percent in 2016.
President Trump's economic approval ratings hit all-time lows: 39 percent in CNBC poll, 30 percent in CNN poll.
GDP growth and jobs numbers remain decent or good; stock market near all-time highs.
76 percent of CNN survey respondents cited affordability as the biggest economic problem for their family.
New data showed inflation at its highest level in three years, partly due to higher energy prices from the Iran war.
Inflation outpaced wage growth for the first time in three years, according to Heather Long of Navy Federal Credit Union.
Producer prices rose the most since 2022, an early sign of future price increases for customers.
Economists Jared Bernstein and Daniel Posthumus proposed a theory that Americans' expectations for stable prices over four decades make current inflation feel like a betrayal.
Open questions
The article notes a puzzle about why current inflation appears to overwhelm all other economic indicators in Americans' minds, making them feel worse than during more severe inflationary periods like the 1970s.
Key figures
Heather Long, chief economist of Navy Federal Credit Union
Jared Bernstein, economist
Daniel Posthumus, economist
President Donald Trump
Sources: vox.com
