Nearly 7 in 10 adults have a negative view of the US economy as federal authorities try to combat inflation.
The CNBC All-America Economic Survey, which reviews perceptions of the economy and economic indicators every quarter, found that 69% of respondents view the economy negatively now and in the future. It is the highest level recorded in the survey’s 17-year history.
Two-thirds of those surveyed said their wages are falling below the level of inflation, and two-thirds that they believe the country is either going to experience a recession or is already in the midst of one. Only a quarter said their household income is keeping up with inflation.
62% said they disapprove of the way President Biden is handling the economy (only 34% said they approved).
The Federal Reserve raised interest rates for the ninth straight time last month to a range of 4.75% to 5%. The Fed has taken aggressive steps to try to control inflation.
Inflation has been falling steadily since last summer, falling from 9.1% in June to 5% last month. But it’s still considerably higher than the Fed’s 2% target rate.
Fed Chairman Jerome Powell has indicated his willingness to take steps to reduce inflation, but some experts have raised concerns that they could lead to a recession.
Unemployment fell to 3.5% in March. 63% of those surveyed said they are not worried about losing their jobs, 5 points more than what pollsters recorded last November. Also 37% said they expect their salaries to increase next year, which is slightly higher than the average in recent years.
More than 80% said they were taking steps to adjust their spending habits in response to inflation, such as spending less on entertainment, traveling less, or using savings to pay for expenses. Most also said they are less likely to buy a car or home now because of higher interest rates.
The survey was conducted April 6-8 and April 10-11 among 1,002 adults.
The margin of error is 3.1 points.
