What Americans Really Think About the Economy Right Now (Explained Simply)

The Big Picture: People Feel Down About Money

Even though the stock market is doing great and prices aren’t rising as fast as before, regular people are feeling just as worried about the economy as they did right after the pandemic. They’re also more stressed about the cost of everyday things like food and medicine.

This info comes from the latest CNBC All-America Economic Survey — a big quiz of regular Americans about how they feel about money and the country.

Important Point: The survey asked 1,000 adults across the U.S. The answers could be off by about 3.1% in either direction (that’s the "margin of error").

What the Survey Found

Here are the key facts from the poll:

• 61% of people feel pessimistic (negative) about the economy today and the future. That’s the highest level since December 2023, when the country was just getting over pandemic price spikes.
• Only 25% feel optimistic (hopeful) about the economy now and later.
• 47% say they are buying fewer needed things — like food and medical care — because prices are high. That’s 6 points more than in April.
• Two-thirds say they are skipping fun stuff like restaurants and movies, up 5 points.
• More people are also traveling less and using credit cards more than they did in April.

A pollster named Micah Roberts said: "More voters expect things to get worse… leaving the electorate in a distinctly sour mood heading into the midterm election cycle."

Why Are People Still Struggling?

You might ask: If gas got cheaper recently, why are folks still upset?

• Gas and oil prices did go down a little.
• But national store sales are still growing slowly — probably because rich people are still spending.
• The survey shows 60% of people earning under $30,000 are cutting back on basics, while only 35% of those earning over $100,000 are.
• Democratic pollster Jay Campbell says: People remember paying way less a year or two ago. A 50-cent gas drop for one month "is just not enough to make up the difference."

Low Marks on the Economy (and Trump)

The survey also looked at how people rate President Donald Trump.

• His overall approval is 40%, with 59% disapproving (1 point worse than April).
• On the economy: 60% disapprove, 38% approve. That’s the worst gap (-22) in his political career.
• On the Iran war: 63% disapprove, 35% approve.
• On inflation and cost of living: 68% disapprove, 31% approve.

But here’s the twist:

• Democrats only lead Republicans by 4 points on who people want to control Congress (same as April).
• Pollsters say voters are "locked into" their parties and won’t switch sides easily.
• Half of voters wouldn’t support a democratic socialist candidate; 52% wouldn’t back a candidate endorsed by Trump; 57% wouldn’t support a "MAGA" candidate.

Split on the Issues

Different groups care about different things. Here’s the simple breakdown:

• Democrats’ strengths:
  • 7-point lead on "cost of food and groceries" (top issue)
  • 3-point lead on "protecting democracy"
  • 6-point lead on housing
  • 18-point lead on healthcare costs
• Republicans’ strength:
  • 22-point lead on immigration/border security (their biggest win)

Who cares about what?

• Most everyone (women, independents, all races, most incomes) says food cost is #1.
• Rich top earners say "protecting democracy" is #1.
• Young voters (18–34) say housing is #1 (46%), with food second (33%).
• Republicans are the only big group that says immigration is the top issue.

The Iran War Divide

People are also split on the war with Iran:

1. 48% think military action is worth it to stop Iran’s nuclear weapons (down from 53% in April).
2. 50% say it’s not worth it (up from 44%).
3. Trump’s net approval on Iran dropped to -28.
4. Only 47% of non-MAGA Republicans approve of his Iran handling; 86% of MAGA Republicans do.

Summary

Even with a strong stock market and lower inflation, most Americans feel pessimistic about the economy and are cutting back on both needs and wants. President Trump’s ratings on the economy, Iran, and prices are deeply negative, but Democrats only have a small edge for Congress. Voters are stuck in their parties, and top concerns split by group: food costs for most, immigration for Republicans, housing for youth. The recent drop in gas prices hasn’t healed the memory of higher costs.

FAQ

Q1: What is the CNBC All-America Economic Survey?
It’s a poll of 1,000 U.S. adults that asks how they feel about the economy, leaders, and big issues. It has a 3.1% margin of error.

Q2: Why are people sad about the economy if things are improving?
Because prices are still much higher than a year or two ago. A small recent drop in gas prices doesn’t erase that memory.

Q3: Do most people blame Trump?
Many disapprove of his handling of the economy (60%) and cost of living (68%), but Democrats only lead Congress preference by 4 points because voters rarely switch parties.

Q4: What do young people care about most?
Voters aged 18–34 say housing is the #1 issue, with food costs second.

Q5: How do Republicans feel about the Iran war?
MAGA Republicans strongly support Trump on it (86%), but non-MAGA Republicans are nearly split (47% approve, 50% disapprove).