Americans’ Economic Confidence Hits a Low
According to a Gallup poll released Friday, confidence among Americans regarding the economy has reached its lowest point in almost four years.
The Gallup Economic Confidence Index dropped to -45 in May, down from -38 in April. This score marks the lowest level since October 2022, when it also registered at -45.
It’s worth noting that the most recent low was -58 in June 2022.
In this survey, just 16% of Americans feel that their financial situation is good, which is the lowest percentage since April of this year. Meanwhile, 49% believe the economy is in poor condition, while 34% think it is fair.
Additionally, 76% of respondents feel that economic conditions are worsening, with only 20% believing they are improving. This pessimism is at its highest since May 2023 and has been rising steadily throughout the year.
The survey results emerged alongside a White House announcement. Apparently, officials are working to create an effective economic messaging strategy ahead of the upcoming midterm elections in November. Recent polls indicate that voters currently have more trust in Democrats than Republicans regarding economic issues.
The White House has not yet responded to requests for comment.
Inflation in the U.S. escalated more than anticipated in April, driven in part by the war with Iran, which caused a spike in gas and food prices. The Consumer Price Index, a key inflation indicator, rose by 3.8% over the year ending in April, with a monthly increase of 0.6%, according to the Bureau of Labor Statistics.
It’s also projected that the national average price for gasoline will hit $4.48 per gallon by Memorial Day, a notable increase from $3.14 per gallon in 2025.
The National Federation of Independent Business (NFIB) reported that its Small Business Optimism Index rose slightly by 0.1 point in April to 95.9, though this remains below the 52-year average of 98 for the second month in a row.
Bill Dunkelberg, NFIB’s chief economist, stated that “inflationary pressures remain a challenge for Main Street.” He added that while small business optimism is currently fragile, benefits from recent tax cuts should begin to take effect in the private sector soon.
The White House highlighted in a May 4 statement that President Trump’s economic policies have “restored confidence in America’s small businesses.”
The findings of the Gallup poll were based on telephone interviews conducted from May 1 to 17 with a random sample of 1,001 U.S. adults. The margin of sampling error for the total national sample is plus or minus 4 percentage points at a 95% confidence level.
