Americans' Views of Economy Sink to 2023 Lows Amid Iran Tensions

Large numbers of Americans are concerned and stressed about their finances, and feelings of security and contentment have declined from a year ago. Those ratings, already low, have fallen to levels not seen since 2023. Three-quarters say incomes are not keeping up with inflation.

Americans describe the economy as uncertain, reflecting both short-term and longer-term worries. Most immediately, they say rising gas prices are weighing on them and they lack clarity on developments in Iran and daily events in the Strait of Hormuz.

More broadly, many express frustration with President Trump's economic approach. Neither party is viewed positively on helping with the cost of living, and many worry that artificial intelligence will take jobs. A growing share say opportunities are worse for them than for their parents' generation.

One reason many call the economy uncertain is that the Iran conflict is affecting gas prices and most Americans say they are not getting a clear picture of what is happening day to day in the Strait of Hormuz. So far, most do not think the conflict has helped U.S. economic interests. Perceptions of military success are higher, but many say it is too soon to judge and views are mixed on whether it advances U.S. strategic interests. Many also say neither side holds the advantage overall.

Mr. Trump is paying a political price. Two-thirds of Americans say his policies are making the economy worse in the short term. Some in the administration have urged patience, but optimism that his policies will improve the economy in the long run is only somewhat higher. Most describe their feelings about the administration's economic approach as frustrated or angry. His ratings for handling the economy and inflation continue to slip. Even among Republicans, who still give him high marks on other issues, ratings for handling inflation have declined, especially since the Iran conflict and the rise in oil prices. The third of Republicans who give him negative marks on inflation say they are frustrated rather than angry. There is now a sizable gap between the marks Republicans give him on immigration, 89 percent, or overall, 85 percent, and those on inflation, 63 percent. His overall approval rating has also ticked down and is now at its lowest level of his second term.

Many Americans do not see an answer from Democrats either. Neither party is seen by a majority as helping with the cost of living, though Democrats hold a relative edge. For all of Mr. Trump's troubles, Democrats are not viewed as much better on economic policy. A sizable third say neither side has the better approach or they are unsure.

Most worry that finding a desirable job would be difficult. Most also worry that artificial intelligence will take jobs. Looking ahead, the outlook for the U.S. economy leans pessimistic, with most expecting either a recession or a slowdown. Most describe the economy by choosing the word uncertain from a list of descriptors, and more use the term unfair than fair. That pessimism is making people, especially those under 50, feel worse about their opportunities than their parents' generation.

This CBS News/YouGov survey was conducted with a nationally representative sample of 2,064 U.S. adults interviewed between May 13-15, 2026. The sample was weighted to be representative of adults nationwide according to gender, age, race, and education, based on the U.S. Census American Community Survey and Current Population Survey, as well as 2024 presidential vote. The margin of error is plus or minus 2.7 points.