Survey finds bleak outlook

Fifty-two percent of American adults say they are worse off financially than they were a year ago, according to a survey conducted for the New York Times last month by the online research platform Momentive. That was up from 41% in April, and was by far the highest share in the survey’s five years. Only 14% of Americans said they were better off than a year ago, the worst in the survey’s history.

The dour mood is also reflected in other surveys. The University of Michigan’s index of consumer sentiment last month hit its lowest level in its 70-year history. Another measure of consumer confidence, from the Conference Board, has also fallen, though less drastically.

There is no mystery as to what is causing consumers’ bleak outlook: prices that are rising at the fastest rate in a generation. More than 9 in 10 Americans say they are concerned about inflation, according to the Momentive poll, including 70% who say they are “very concerned,” up from 63% in April.

Inflation has emerged as a major political challenge for President Biden and congressional Democrats. Only 31% of Americans said they approved of Biden’s approach to inflation; support was muted even among Democrats, with 58% saying they approved of Biden’s approach, and only 15% of them “strongly.”

Survey respondents were equally critical of the approach taken by the Federal Reserve, which has begun aggressively raising interest rates in an effort to bring down inflation. Only 30% of Americans said they approved of the Fed’s handling of the issue.

The survey has an error estimate of plus or minus 2 percentage points.