Stock Market Soars but Public Remains Unimpressed! 60% of Americans Pessimistic About Economy, Trump Support Hits New Low

Despite continued gains in U.S. stock markets and signs of improving inflation, Americans' perception of the economy has clearly deteriorated. According to CNBC's latest 'All-American Economic Survey,' 61% of respondents expressed pessimism about current economic conditions and future prospects—the highest since December 2023—while only 25% felt optimistic. Rising anxiety over the cost of daily living is further undermining public approval of President Trump's economic policies.

The poll surveyed 1,000 U.S. adults, with a margin of error of ±3.1 percentage points. Micah Roberts, partner at Republican polling firm Public Opinion Strategies, noted that 41% of respondents believe the situation will worsen, compared to 29% who expect improvement—indicating voter sentiment remains deeply negative ahead of the midterm election cycle.

Cost of Living Pressure Rises: Nearly Half Cut Back on Food and Medical Spending

The survey reveals that price pressures are forcing more households to reduce spending on basic necessities. 47% of respondents said they have cut spending on essentials like food and healthcare—an increase of 6 percentage points from the April survey. About two-thirds have reduced non-essential spending such as dining out and entertainment, up 5 percentage points from April.

Additionally, more Americans are cutting travel budgets and increasing credit card usage, reflecting growing household financial stress. These findings contrast sharply with recent declines in oil and gasoline prices and diverge from official government data showing modest growth in retail sales.

Pollsters suggest national consumer data resilience may be driven primarily by high-income groups. Among respondents earning less than $30,000 annually, 60% reported cutting essential spending, compared to only 35% among those earning over $100,000—highlighting a clear divide in spending capacity across income levels.

Jay Campbell, partner at Democratic polling firm Hart Research, stated that recent slight declines in gasoline prices are insufficient to offset years of accumulated price increases. Even with temporary price drops, Americans still feel the cost of food, housing, and medical services is higher than one or two years ago. This sustained dissatisfaction is translating into negative evaluations of the government.

Trump's Economic Approval Rating Hits Record Low, Inflation Most Criticized

Trump's overall approval rating remains low. The survey shows 40% approve of his performance, while 59% disapprove—his net approval rating declining by another percentage point since April.

On economic issues, only 38% approve of Trump's handling, with 60% disapproving—resulting in a net approval of -22 percentage points, the worst in Trump's political career. On inflation and cost of living, disapproval reaches 68%, with only 31% in support.

Trump's handling of the U.S.-Iran conflict also faces majority disapproval: 63% disapprove, 35% approve. The share of respondents who believe military action against Iran is 'worth it' dropped to 48%, down from 53% in April, while those who believe it is 'not worth it' rose from 44% to 50%. Trump's net approval on Iran policy fell to -28 percentage points, worsening by 3 points from the previous survey.

Notably, divisions exist even within the Republican Party. Among self-identified non-MAGA Republicans, only 47% approve of Trump's handling of the Iran conflict, with about 50% disapproving. In contrast, 86% of MAGA-aligned Republicans still support Trump.

Democrats Hold Narrow Lead as Voters Remain Deeply Partisan

Despite widespread dissatisfaction with the economy and Trump's policies, Democrats lead Republicans by only 4 percentage points on preference for congressional control—unchanged from April. Polling experts suggest this indicates Democrats hold a temporary edge but have not achieved the overwhelming lead needed to trigger a 'wave election.'

Both Democratic and Republican pollsters note that American voters' party affiliations remain highly rigid. Even when dissatisfied with economic or foreign policies, voters are reluctant to switch allegiance. Support for both parties has become more concentrated since April, canceling each other out and leaving overall congressional control preferences nearly unchanged.

On key issues, each party holds advantages. Democrats lead by 7 percentage points on the most watched issue—grocery and food prices—and by 3 points on 'protecting democracy.' They also lead by 6 points on housing costs and 18 points on healthcare costs.

Republicans lead by 22 percentage points on immigration and border security—the largest gap across all issues. Republican voters are the only major group that prioritizes immigration as their top concern; Democrats, independents, women, various ethnic groups, and most income brackets consistently rank food prices as the most important issue.

Young voters show different priorities. Among respondents aged 18 to 34, 46% cite housing as a major issue, with food prices second at 33%—indicating rising home prices and rents are becoming the heaviest economic burden for younger Americans.

Overall, the poll shows that stock market gains and improving inflation data have not yet translated into public confidence in the economy. Rising living costs, income inequality, and war spending continue to erode Trump's support. However, Democrats have not yet effectively converted public discontent into a clear electoral advantage, leaving the midterm election outlook highly uncertain.