More than half of Americans report their financial situation is worsening, marking the highest level of economic pessimism in over 25 years, according to new Gallup data. The survey, conducted April 1-15, found that 55% of respondents believe their financial conditions are deteriorating, up from 53% last year and 47% in 2024. This marks the fifth consecutive year where more Americans have reported declining finances.
The primary driver of this sentiment is the rising cost of living, cited by 31% of respondents as their most significant financial challenge. Energy costs have emerged as a growing concern, with 13% of Americans identifying it as a top issue—a 10-point increase from last year and the highest level since 2008. The average price of a gallon of gas has surged to $4.11, up from under $3 before the escalation of conflict in Iran in late February.
This is a direct hit on American workers and families already struggling with persistent inflation and economic uncertainty.
While inflation has moderated from its 2022 peak, it remains elevated compared to pre-pandemic levels. The recent spike in gas prices has added immediate pressure to household budgets, further straining Americans’ financial outlook. As the midterm elections approach, these economic challenges pose a significant test for President Trump and Republicans, particularly as many Americans attribute the rising costs to current policies.