70% of Americans Fear Recession in Next Year as Cost of Living Fuels Sour Mood
Updated
Updated · AlterNet · May 12
70% of Americans Fear Recession in Next Year as Cost of Living Fuels Sour Mood
4 articles · Updated · AlterNet · May 12
Nearly 70% of Americans say a recession is likely within the next year, underscoring a broad economic pessimism that clashes with Trump's claims the economy has never been better.
Inflation and day-to-day costs are driving that mood: Americans across income groups say they are trimming grocery lists, cutting extras and struggling to save.
88% say now is a better time to save than make major purchases, while Bank of America data cited by CNN show middle- and lower-income wages stopped outpacing inflation last year.
The strain spans generations and parties, with younger Americans doubting homeownership is attainable and some workers saying even two full-time jobs barely cover bills.
The findings extend five straight years of negative economic views in CNN polling and point to political risk for Trump and Republicans ahead of the midterms.
Why do Americans feel poorer than ever when economic data like job growth and GDP remain strong?
With living costs soaring, what can restore the promise of upward mobility for the next generation?
U.S. Consumer Sentiment Hits Historic Lows in 2026: The Economic Toll of Inflation, Middle East Conflict, and Affordability Crisis
Overview
Americans in May 2026 are facing deep economic anxiety, leading to a sharp reduction in discretionary spending and a shift toward financial caution. This unease is driven by grim consumer sentiment, as households delay major purchases and adopt more conservative financial habits. The ongoing conflict in the Middle East has taken a psychological toll, further souring public views on economic policy and creating significant challenges for the current administration. These interconnected factors—ranging from global instability to personal financial worries—are fueling widespread uncertainty and shaping cautious behavior across the country.