What's Happening?
A recent AP-NORC poll indicates that a significant portion of American consumers are experiencing economic strain during the holiday season under President Trump. The survey reveals that 68% of U.S. adults
perceive the economy as 'poor,' a sentiment unchanged since December 2024. Many Americans report higher prices for groceries, electricity, and holiday gifts, with about half finding it harder to afford gifts and delaying major purchases. Despite President Trump's claims of a booming economy, his tariffs have contributed to inflationary pressures, affecting consumer behavior. The poll highlights that consumers are increasingly seeking bargains and dipping into savings, with 4 in 10 Americans using savings more than usual. The economic sentiment mirrors that of December 2022, during President Biden's tenure, when inflation was also a major concern.
Why It's Important?
The poll's findings underscore the persistent economic challenges facing American consumers, despite claims of economic improvement. The continued perception of a 'poor' economy could have significant implications for public confidence and consumer spending, which are critical drivers of economic growth. President Trump's economic policies, including tariffs, are under scrutiny as they appear to exacerbate inflationary pressures, affecting consumer purchasing power. The poll suggests that economic dissatisfaction could influence political dynamics, particularly with upcoming midterm elections. The economic strain is not only a financial issue but also a political one, as it affects public perception of the administration's effectiveness in managing the economy.
What's Next?
Looking ahead, the administration plans to bolster public confidence in the economy through nationwide campaigns. However, the poll indicates limited optimism for economic improvement in 2026, with only 2 in 10 Americans expecting better conditions. The administration's challenge will be to address the economic concerns of both Republican and Democratic voters, as dissatisfaction spans across party lines. The effectiveness of President Trump's policies in reversing economic sentiment remains to be seen, and the administration may need to consider additional measures to alleviate consumer concerns and stimulate economic growth.
