Never before have so many Americans felt their outlook was so rotten.
The University of Michigan Consumer Sentiment Survey showed on Friday that 32% of Americans expect their household financial situation to deteriorate in the coming year, a record share, in largely due to rising prices.
“When asked to explain the evolution of their finances in their own words, more consumers mentioned a decline in living standards due to rising inflation than at any other time except during the two worst recessions in fifty years: from March 1979 to April 1981, and from May to October 2008. In addition, 32% of all consumers expected their overall financial situation to deteriorate during the year to come, the highest level recorded since surveys began in the mid-1940s,” said Richard Curtin, the survey’s chief economist.
Consumer confidence fell sharply in Biden’s first year in office, with the University of Michigan measure falling 30% from a year ago. Moreover, only 16% say they have confidence in the country’s economic policies, a third less than those who say they have no confidence.
About seven in 10 Americans say the country’s economy is in poor shape and nearly two-thirds disapprove of Biden’s handling of the economy, according to a poll released Friday by the Associated Press-NORC Center for Public Affairs Research.