After more than a year of high inflation and continued interest rate hikes, Americans continue to worry about the economy.
In fact, a new poll from CNN shows that more than half of the county believes the economy is getting worse, even as some economic indicators point in a positive direction.
According to the poll results released Thursday, 51% of the 1,279 respondents surveyed through the month of July said they believe the economy is in downturn and conditions continue to worsen. That’s down slightly compared to a December poll.
Most Americans (63%) also disapprove of the way President Joe Biden has handled the economy, down slightly from 66% in March. Overall, the top issue for Americans, per the poll, was the economy at 44%.
Although Americans are concerned about a variety of economic issues, including cost of living, poverty, unemployment, economic inequality, gas prices and more, CNN noted that some economic indicators show the economy is strong. This includes a continued deceleration of the Federal Reserve Bank’s “preferred inflation gauge,” the Personal Consumption Expenditures price index.
“Inflation is cooling, business investment is rising, job growth is powering on and surveys suggest rising economic optimism among consumers and voters,” The New York Times reported Tuesday. Vice President Kamala Harris was in Wisconsin Thursday to discuss investments in the manufacturing sector to create jobs.
These may be indicators that the U.S. is headed for a softer economic landing than experts expected, but Americans are still struggling with economic conditions that have been especially volatile since the start of the COVID-19 pandemic. Inflation has been impacting household spending for over a year, and continued interest rate hikes aimed at curbing inflation have made it harder for Americans to borrow money.
“Negative personal impacts due to the economy remain common and many still say that economic conditions are changing their spending patterns,” said CNN.
There have been major layoffs too, including recent AETNA CVS Health cuts, and Fox Business reported this week that rent costs remain higher than pre-pandemic levels. Writers and actors now on strike in the TV and film industry have also warned about new challenges on the horizon for all workers as artificial intelligence technology continues to evolve.
“Perceptions of the economy remain bleak,” according to CNN.
Just 25% of the poll participants said that U.S. economic conditions were good. More Republicans (54%) said that conditions were very poor compared to Democrats (15%). Even among Democrats and Democratic-leaning independents, there are indicators that “younger, less educated and lower-income segments of the party remain deeply negative about the economy even as the higher-income, college-educated core of the party sees a rosier economic picture.”
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