In Trump Economy, Holiday Spending Plans Plummet and Layoffs Hit Highest Level Since Covid Pandemic
The grim data arrive as President Donald Trump is reportedly planning to "aggressively push back" on negative perceptions about his economy.
A new batch of data is offering more evidence that the US economy is in rough shape heading into the holidays.
The latest Economic Confidence Index released by Gallup on Thursday has found that Americans' confidence in the economy has fallen by seven points over the last month, and now stands at its lowest level in more than a year.
Overall, Gallup found that just 21% of Americans currently describe the economy as excellent or good, while 40% describe it as poor. The outlook for the near future also looks grim, as more than two-thirds of Americans surveyed said the economy is currently getting worse.
This deteriorating economic confidence is weighing on Americans' holiday shopping plans, as Gallup found that planned holiday spending expenditures have "plummeted" from just over $1,000 in October to $778 in November. The decline in spending expectations also occurred across all income groups, although it was particularly steep among low-income households, which slashed their estimated holiday spending by an average of $267.
Gallup noted that while it's common for shoppers to trim their spending plans the closer it gets to the holidays, the drop between October and November this year was the biggest it has ever recorded, even "surpassing the $185 drop seen during the 2008 global financial crisis."
The Gallup survey was not the only troubling economic data to drop on Thursday, as outplacement firm Challenger, Gray, and Christmas released its latest report showing that hiring in the US has slowed to its lowest level in the last 15 years, while layoffs now total their highest level since 2020, when the country was at the peak of the Covid-19 global pandemic.
The data on layoffs came just one day after global payroll processing firm ADP estimated that the US economy lost 32,000 jobs in November, with small businesses shouldering by far the most job losses.
President Donald Trump, who earlier this week dismissed concerns Americans might have about affordability as a "Democrat scam," has reportedly decided to hit the road in an effort to convince voters that they've never had it so good.
According to Axios, Trump next week will start touring the country to tout his administration's economic policies, and he is expected to "aggressively push back against criticism over the cost of everyday essentials—an issue that helped propel him to victory over Kamala Harris last year."
However, a new poll published by Politico on Thursday shows that Trump may have an uphill climb selling his economy even to his own voters.
Overall, the poll found that 37% of voters who backed Trump last year now say that the cost of living crisis is the worst they have experienced in their lifetimes, while only 24% of 2024 Trump voters say that the cost of living crisis at the moment is "not bad."
The poll also found that Trump's efforts to blame former President Joe Biden for the current state of the economy aren't flying, as 46% of voters say that Trump is most to blame for the current state of the economy, compared to 29% of voters who put the primary blame on Biden.
