The drop in consumer sentiment was almost universal, the survey found, as “demographic groups across age, income, and political party all posted setbacks in sentiment, as did every component of the index, reflecting the widespread nature of this month’s fall.”
As for the reasons for the decline, the survey found “many consumers blame the Iran conflict for unfavorable changes to the economy,” such as a major spike in gas prices, which the US Bureau of Labor Statistics reported on Friday increased by more than 20% in the month since the war began.
Heather Long, chief economist at Navy Federal Credit Union, noted that the latest consumer sentiment data showed Americans are even more sour on the economy now than they were in the summer of 2022, when the economy was dealing with the highest inflation it had seen in decades.
Kendall Witmer, rapid response director of the Democratic National Committee, seized on the consumer sentiment report and accused Trump of having “tanked the economy for working families.”
“Americans are drowning under rising costs, flat wages, high unemployment, and historic layoffs,” Witmer added. “It’s no wonder they’re concerned about how they’re going to make ends meet and Trump and [Vice President] JD Vance can’t be bothered to make life more affordable for them.”
The record low in consumer sentiment comes just weeks after Gallup released its annual World Happiness Report, which showed that the US had fallen out of its rankings of the 20 happiest countries in the world.
The report says the decrease in US happiness largely came from “lower life evaluations among young adults,” and points the finger at high social media use as a key factor in making young people miserable.
Specifically, the report finds “there is now overwhelming evidence of severe and widespread direct harms (such as sextortion and cyberbullying), and compelling evidence of troubling indirect harms (such as depression and anxiety)” from social media use, adding that “the harms and risks to individual users are so diverse and vast in scope that they justify the view that social media is causing harm at a population level.”
Social media’s impact on mental health has come into focus in recent weeks with juries in multiple states finding Big Tech companies liable for creating products that harm children.
In March, a New Mexico jury found social media giant Meta liable for harming children’s mental health and safety, ordering the company to pay $375 million. A day later, a Los Angeles jury ordered Meta and Google to each pay $3 million in civil damages to a now-20-year-old woman who alleged harm and suffering caused by their products when she was an adolescent.
Journalist Derek Thompson took stock of the Gallup survey and the University of Michigan survey, as well as last year’s General Social Survey that also documented a decline in US happiness, and declared, “America is not OK.”
