(The Hill) — Nearly seven in 10 adults hold a negative view of the U.S. economy as officials try to fight off inflation, according to a new survey.
The most recent CNBC All-America Economic Survey, which reviews perceptions of the economy and economic indicators every quarter, found 69% of respondents view the economy negatively currently and in the future, which is the highest level recorded in the poll’s 17-year history.
Two-thirds of those surveyed said their wages are falling behind the level of inflation, and two-thirds also said they believe the country is going to experience a recession or is already in one. Only a quarter said their household income is keeping up with inflation, and 5 percent said their income is exceeding inflation.
Pollsters found 62% said they disapprove of how President Joe Biden is handling the economy, while only 34% said they approve. The 62% is an increase from the 57 percent who said they disapproved of his performance in CNBC’s last survey and is Biden’s second-worst review of his handling of the economy from the survey.
The Federal Reserve raised interest rates for the ninth consecutive time last month to a baseline range of 4.75 percent to 5 percent. The Fed has taken aggressive steps to get inflation under control.
Inflation has been consistently dropping since last summer, dropping from 9.1% in June to 5% last month. But it is still considerably higher than the Fed’s target rate of 2%.
Fed Chair Jerome Powell has indicated a willingness to take steps to get inflation down, but some economic experts have expressed concern the steps could lead to an economic downturn and possibly a recession.
Still, the economy has shown resilience, with unemployment dropping to 3.5% in March as the economy added 236,000 new jobs.
The survey also found 63% of respondents said they are not worried about losing their jobs, which is 5 points higher than what pollsters recorded in November. It also found 37% said they expect their wages to increase in the next year, which is slightly higher than average in recent years.
More than 80% said they are taking some action to adjust their spending habits in response to inflation — like spending less on entertainment, traveling less or using their savings to pay for expenses. A majority also said they are less likely to buy a car or home now because of higher interest rates.
The poll was conducted from April 6 to 8 and April 10 to 11 among 1,002 adults. The margin of error was 3.1 points.