Americans Remain Pessimistic About Economy Despite Falling Inflation and Low Unemployment

Persistent high prices and stagnant wages contribute to gloomy outlook, with political partisanship also influencing perceptions.

Inflation has reached its lowest point in 2 1/2 years and the unemployment rate has stayed below 4% for the longest stretch since the 1960s, yet most Americans hold a glum view of the economy.
Despite the steady cooling of inflation over the past year, many goods and services are still far pricier than they were just three years ago.
Adjusted for inflation, median weekly earnings have risen at just a 0.2% annual rate from the final three months of 2019 through the second quarter of this year, leaving many Americans feeling that they have made little financial progress.
Lower-income Americans, who have generally received the largest percentage wage gains since the pandemic, typically face a higher inflation rate because they spend a greater proportion of their income on volatile expenses such as food, gas and rent.
Political partisanship also plays a role in economic sentiment, with Republicans far more likely than Democrats to characterize the economy as poor under President Biden.