A record share of Americans say their finances are worsening, as war-driven inflation adds to years of cost-of-living pressure.
The poll, published Tuesday, found that 55% of Americans now say their finances are getting worse — a record high since Gallup began tracking the question in 2001, surpassing even the pessimism recorded during the COVID-19 pandemic and the Great Recession.
It marks the fifth consecutive year that more Americans report worsening rather than improving financial conditions. The survey is based on interviews with 1,001 adults conducted April 1–15.
Prices Remain The Dominant Concern
Inflation and high prices remain the top financial problem cited by American families, with 31% naming it in Gallup’s annual Economy and Personal Finance survey, conducted April 1–15. Energy costs have surged as a second major worry, jumping 10 percentage points from last year to 13%, the highest reading since 2008.
Only 46% of Americans currently rate their financial situation as “excellent” or “good” levels, more consistent with the 2008–2015 period than the relative confidence seen between 2016 and 2021.
‘No Going Back On Oil Prices,’ Economist Warns
The Gallup findings arrive as new inflation risks take hold. Mark Zandi, chief economist at Moody’s Analytics, told CBS News the damage from the Iran war is already entrenched. “I think the damage has already been done, in part because there’s no going back on oil prices, at least not any time in the near future,” he said.
Zandi warned that oil production would take a long time to recover, given widespread damage to energy facilities across the Middle East. Under the most optimistic scenarios, he projected gas prices could settle near $3.50 a gallon by year-end still above the pre-war level of $2.98.
Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, echoed that view, warning that “the inflation trough for the current cycle has already passed,” citing tariffs and the Iran war as “wildly inflationary” forces. “Once the genie is out of the bottle,” he wrote, “much tougher putting it back in.”
Housing And Consumer Confidence Crack
The impact is increasingly visible across the economy. The University of Michigan’s preliminary April survey showed consumer sentiment falling to an all-time low of 47.6, while one-year inflation expectations jumped to 4.8%, marking a 100-basis-point increase in a single month.
At the same time, housing demand is beginning to feel the strain. D.R. Horton Inc. (NYSE:DHI), the largest U.S. homebuilder by volume, also flagged affordability constraints and cautious consumer sentiment as continuing headwinds, even as net sales orders rose 11% year over year.
Gallup noted that while inflation has retreated from its 2022 peak of 9.1%, it has not consistently returned to the pre-2021 range and for many households, the financial damage from that period has yet to reverse.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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