Worries about rising costs, job security, and inflation are dragging down Trump’s economic approval ratings. At the same time, consumer confidence is slipping, and economic warning signs are growing. The Atlanta Fed recently lowered its first-quarter GDP growth forecast, predicting a negative 1.5% growth, a sharp drop from previous predictions of 2.3% and 3.9%.
A February Gallup poll found that just 42% of Americans approve of Trump’s economic leadership, while 54% disapprove. In a Reuters/Ipsos poll, approval dropped further to 39%, down from 43% the previous week.
This is a stark contrast to Trump’s first term, when his economic approval stood at 53% in 2017. While some of this drop could reflect a general dip in enthusiasm about the economy, it’s a worrying sign for Trump’s team.
The Reuters/Ipsos poll also revealed that 44% of Americans believe the job market is headed in the wrong direction, while only 33% think it’s moving in the right direction. Additionally, 53% of respondents feel the economy is on the wrong track, and 64% believe their cost of living is worsening. A plurality, 44%, say the employment situation is also going in the wrong direction, and a majority, 53%, think corruption is off track as well.
On a larger scale, fresh concerns emerged about the economy’s future. The Atlanta Fed’s GDP forecast for the first quarter was downgraded drastically. Just a week ago, it predicted 2.3% growth, but now it’s expecting a negative 1.5%.
Trump’s tariffs have also raised concerns. While many tariffs he threatened have not been implemented yet, more are expected soon, adding to worries about the economy.
“Early evidence shows that the uncertainty surrounding current policies is affecting consumer and business confidence,” wrote Deutsche Bank analysts, noting that markets are pricing in a higher risk of recession.
Consumer sentiment also took a sharp dip in February, dropping nearly 10% from January and 16% from a year ago, according to the University of Michigan.
Trump has acknowledged the rise in inflation, but has quickly distanced himself from it. “Inflation is back. No, think of it: Inflation’s back,” Trump said in a recent Fox News interview. “And they said, ‘Oh, Trump,’ and I had nothing to do with that.”
