The economic outlook is dimming, and President Trump is taking the blame, according to a recent CNBC survey. Despite a booming stock market and improving inflation numbers, the public's mood is sour, with 61% expressing pessimism about the current state of the economy and its future prospects. This is a stark contrast to the 25% who are optimistic, and it's the highest percentage of pessimism since the pandemic-era inflation. What's more, 47% of the public report cutting back on essential items like food and medical care, and two-thirds are reducing purchases of non-essentials. These numbers stand in contrast to steady and modest growth reported in national retail sales, which could be driven by spending from the wealthy. The survey also found that Trump's approval ratings remain deeply underwater, with 60% disapproving of his handling of the economy. This is the most underwater he has been in his political career, and it's not just the economy that's causing problems. The public disapproves of Trump's handling of the war with Iran by a 63% to 35% margin, and his handling of inflation and the cost of living by a 68% to 31% margin. Despite this, the Democratic Party has only a 4-point advantage on congressional preference, unchanged from April. This suggests that the party is only modestly benefiting from the dissatisfaction with the economy and the Iran war. The survey also found that the electorate is sharply divided, with partisans digging in and increasing their support for their chosen party. This is an environment where each party has been defining the other by their extremes, and it's not just the economy that's causing problems. Trump is underwater with parts of his own party on the Iran war, and the public is split on the most pressing issues. Democrats have a 7-point lead on the most important concern, the cost of food and groceries, and a 3-point lead on the second most important issue, 'protecting democracy.' But Republicans lead by 22 points on the third issue, immigration and border security. The survey also found that the cost of food is the top issue for Democrats, independents, and women, especially women aged 18-49. For Republicans, immigration is the top issue, and voters aged 18-34 elevate housing to the top spot. The economic outlook is worsening, and President Trump is taking the blame, but the survey also reveals a sharply divided electorate and a complex set of issues that are driving public opinion.
