Trump's approval rating on the economy takes hit because of shutdown, inflation, CNBC survey finds

The CNBC All-America Economic Survey for Q3 reveals a significant deterioration in American economic sentiment, driven by deepening concerns over inflation, job security, and the overall economic outlook. A substantial 72% of respondents now rate the economy as 'just fair or poor,' with only 32% anticipating improvement next year, marking the lowest level since March 2024. Key findings include widespread disapproval of current inflation and tariff policies, a record high (since 2022) in job loss concerns among over a quarter of Americans, and low expectations for salary increases coupled with persistent fears of rising prices, signaling broad economic pessimism, particularly among independent voters.

Analysis

The CNBC All-America Economic Survey for Q3 reveals a significant deterioration in American economic sentiment, with 72% of respondents now rating the economy as "just fair or poor." This marks a reversal from Q2 improvements, driven by deepening concerns over inflation, job security, and the overall economic outlook. Only 32% anticipate economic improvement next year, the lowest level since March 2024.

Public disapproval of inflation and cost of living policies is pronounced, with 62% expressing dissatisfaction, representing the worst figures in the president's second term. Similarly, 56% disapprove of current tariff policies, reflecting a worsening net approval of -15 compared to -6 in the prior quarter. These figures underscore broad public concern over price stability and trade.

Job worries are escalating, with over a quarter of Americans concerned about potential job loss in the next year, the highest level since 2022. While 58% feel confident in finding new employment, less than a third expect salary increases amidst persistent perceptions of rising prices. This broad economic pessimism is significantly influenced by independent voters, who are highly sensitive to financial and economic measures.

Key Decisions for Investors

• Investors should closely monitor upcoming inflation data and labor market reports for signs of further deterioration in consumer confidence and spending power.
• Consider adjusting portfolio allocations towards defensive sectors or companies with strong pricing power, given the widespread concerns about inflation and potential economic slowdown.
• Evaluate the potential for policy shifts regarding trade and tariffs, as sustained public disapproval could lead to changes impacting global supply chains and corporate profitability.