According to a new CNBC All-America Economic Survey, Americans have never been more pessimistic about the economy amid ongoing inflation, rising interest rates, and recession concerns.
Throughout the survey’s 17-year history, a record 69% of the population had negative opinions about the economy, both now and in the future.
Almost two-thirds of Americans think their earnings are not keeping up with inflation, and two-thirds believe that the country is either entering or has already entered a recession, according to a study of 1,000 respondents conducted nationally with a margin of error of +/-3.1%.
Despite having poor opinions about the economy, 63% of Americans who are currently employed—up 5 points from November—don’t worry about losing their employment.
Moreover, somewhat more than usual over the last few years, 37% of respondents anticipate a rise in pay in the next year.
Nonetheless, the majority of Americans believe that their earnings do not allow them to keep pace with inflation.
Just 5% of households claim that their income is increasing faster than the rate of inflation, 26% say it is keeping up, and 67% say they are falling behind.
Large majorities claim they are changing their expenditures and lifestyles as a result of inflation.
About 81% of respondents claim to be acting in some way, whether it is reducing their entertainment expenditure, traveling less, or utilizing their funds to make purchases.
According to the poll, the consequences are not distributed fairly.
In comparison to upper-middle-class People (54%), around three-quarters of self-described working-class Americans said they are reducing their leisure and eating out expenses because of inflation.
Around 51% of the working class, as opposed to only 18% of the upper middle class, say they are working harder to make ends meet.
Moreover, compared to 12% of white People, 24% of Black Americans believe they are most negatively impacted by rising housing prices.
Across all racial groups, political parties, and income levels, 54% of Americans reported that the rise in food costs had the greatest impact on them.