Americans’ Economic Sentiment Hits Record Low Amid High Prices
8 reported
According to a Vox report, American consumer sentiment has reached its lowest level in the postwar era, based on the University of Michigan's monthly survey, which has been conducted since 1952. A CNN survey found that only 47 percent of respondents believe 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 lows, with CNBC showing 39 percent and CNN showing 30 percent. These declines come despite decent GDP growth, jobs numbers, and near-record stock market highs. The primary driver of public frustration is high prices and the cost of living, with 76 percent of CNN respondents citing affordability as the biggest economic problem. 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 also rose the most since 2022, signaling potential future price increases for consumers.
What’s reported
University of Michigan consumer sentiment survey hit its lowest level ever in the postwar era last month.
CNN survey: 47 percent of respondents agreed most people can get ahead if they work hard, down from 67 percent in 2016.
President Trump's economic approval: 39 percent in CNBC poll, 30 percent in CNN poll.
76 percent of CNN respondents cited affordability as the biggest economic problem.
New data showed inflation at its highest level in three years, partly due to the Iran war.
Inflation outpaced wage growth for the first time in three years, per economist Heather Long.
Producer prices rose the most since 2022.
Economists Jared Bernstein and Daniel Posthumus proposed that Americans' expectations for stable prices over four decades make current inflation feel like a "betrayal."
Key figures
President Donald Trump
Heather Long, chief economist of Navy Federal Credit Union
Jared Bernstein, economist
Daniel Posthumus, economist
Sources: vox.com
