- 57% of Americans now say the U.S. economy is worsening—the highest pessimism level in over a year amid shutdown, inflation, and trade tensions.
- Worsening sentiment risks reducing consumer spending, affecting jobs and holiday shopping, and could shape policy and the 2026 political landscape.
In a stark reflection of mounting frustrations, a fresh poll indicates that a majority of Americans—57 percent—now believe the U.S. economy is deteriorating, marking the highest level of pessimism in more than a year.
This surge in negative sentiment comes amid a prolonged government shutdown, persistent inflation worries, and escalating trade tensions.
As 2025 draws to a close, public views on the economy have taken a decidedly gloomy turn.
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This shift aligns with broader challenges, including a federal government shutdown now entering its third week, sticky inflation rates, and sharp partisan clashes.
Experts warn that such widespread discontent could ripple through consumer spending, influence upcoming policy debates, and even shape the political landscape ahead of the 2026 midterms.
Declining confidence isn’t just a statistic—it’s a signal that could affect everything from holiday shopping to voter turnout, as families grapple with rising costs and uncertainty.
Key Findings from the Poll
The latest Economist/YouGov survey, conducted from October 10 to October 13 among 1,622 U.S. adults, paints a concerning portrait.
Only 18 percent of respondents feel the economy is improving, while 21 percent say it’s staying roughly the same—both figures down from earlier in the year.
A slim 4 percent remain unsure.
Allen Houston from YouGov highlighted to Newsweek that this 57 percent figure hasn’t been seen since May 2024, during the tail end of President Joe Biden’s term.
The poll carries a margin of error of 3.5 percent, underscoring its reliability in capturing national mood.
Top concerns for Americans? I
nflation and prices lead the pack, followed closely by jobs and the economy, and health care.
This echoes a prior YouGov poll from October 4 to October 6, where 53 percent already viewed the economy as worsening—a number that’s climbed steadily.
Adding fuel to the fire is the ongoing federal shutdown, which kicked off on October 1.
Treasury Secretary Scott Bessent recently warned that it’s “starting to affect the real economy. It’s starting to affect people’s lives,” pointing to delays in pay for federal workers and military personnel.
Voices from Experts and Leaders
Mark Williams, a master finance lecturer at Boston University’s Questrom School of Business, shared his insights with Newsweek: “Compared to last year, the U.S. economy is slowing down. Consumer confidence has hit recent lows, reflecting the uncertainty around rising layoffs, slowing hiring and an ongoing federal shutdown. Economic data is also pointing to inflation remaining sticky and above Fed target rates.
“The trade war with China, reignited by the White House last week, has also elevated market uncertainty with stocks dropping and gold prices hitting new historic highs. The only silver lining in recent economic news is that the Fed has finally started a rate-cutting cycle in an attempt to shoreup a softening job market, which could benefit consumers interested in borrowing for mortgages, cars and other purchases. However, should layoffs continue to climb, those without jobs will not have the means to borrow or take advantage of these falling interest rates.”
On the political front, DNC Rapid Response Director Kendall Witmer fired off a statement via email: “Working families are footing the bill for Donald Trump’s trade war. Let’s be clear: Trump’s billionaire buddies are profiting off his trade war while they pass on costs to consumers, who are already struggling under the weight of his failed economy. Trump’s reckless tariffs are needlessly spiking inflation and driving up prices on everything from groceries to housing to utilities. Trump could reverse his reckless economic policies today — but he won’t, because he’d rather satisfy his own ego.”
President Donald Trump, addressing reporters on Tuesday, pushed back against the criticism: “The last administration had the greatest inflation in the history of our country. And now, as you know, groceries are down, it’s all down.” Trump never wastes a moment to try and blame the previous administration.
Uncertainty Looms
With no end in sight for the government shutdown, economic optimism could sink even further.
Low- and middle-income households, already bearing the brunt of these pressures, may face amplified hardships if disruptions drag on.
As analysts monitor incoming data, the coming weeks will be crucial in determining whether this pessimism is a temporary dip or a sign of deeper troubles ahead.
For now, the numbers speak volumes about a nation on edge.
Also Read: Economists Now Warn Trump’s Immigration Policies Will Slow US Economy
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