Americans’ Economic Sentiment Hits Postwar Low Amid Persistent Inflation
8 reported
A new analysis explores why Americans’ economic sentiment has reached its lowest point in the postwar era, even as key indicators like GDP and jobs remain strong. The University of Michigan’s consumer sentiment survey recorded its lowest level ever last month, according to the article. A CNN survey found that only 47 percent of respondents believe most people can get ahead through hard work, 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. The article reports 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 also rose the most since 2022, which can signal future price increases for customers.
What’s reported
The University of Michigan consumer sentiment survey recorded its lowest level ever last month.
A 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 new lows: 39 percent in a CNBC poll and 30 percent in a CNN poll.
76 percent of CNN survey respondents cited affordability as the biggest economic problem facing 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 Navy Federal Credit Union chief economist Heather Long.
Producer prices rose the most since 2022, which can be 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 the 2020s 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
