Ho, ho… oh, no!
Many Americans are dipping into savings to buy gifts and hunting for sales this holiday season as they voice pessimism about the economy, a new AP-NORC poll found.
About half of Americans say it’s harder than usual to afford the gifts they want to give this year, according to the survey by the Associated Press-NORC Center for Public Affairs Research.
One out of every two Americans also say they are cutting back on non-essential purchases and delaying big buys, the poll found.
The results come as inflation has been raging across the country — and Americans have noticed.
The survey found 89% of respondents feel grocery prices have gone up. About seven in 10 say the same about the cost of electricity.
A little over 60% of Americans say holiday prices have gone up, too.
Nearly seven in 10 US adults — 68% — rate the economy as “poor.” The figure was the same in December 2024, before President Donald Trump reentered office.
He has spent recent weeks addressing inflation, saying economic challenges are former President Joe Biden’s fault.
“Americans continue to reel from the lingering effects of Joe Biden’s generational economic crisis,” White House spokesman Kush Desai said in a statement.
“Turning the Biden economic disaster around has informed nearly every action the Trump administration has taken since Day One, from unleashing American energy to cut gas prices to signing historic drug pricing deals to cut costs for American patients.”
“Much work remains, and every member of the Trump administration continues to focus on recreating the historic job, wage, and economic growth that Americans enjoyed during President Trump’s first term,” Desai added.
The new poll results were on par with consumer sentiment from December 2022, when inflation was surging. While inflation has cooled from its peak, Americans say relief hasn’t shown up where it matters most: prices on store shelves.
That reality is forcing shoppers to get strategic. Around half of Americans say they’re searching for the lowest prices more than usual, and about four in 10 report dipping into their savings to cover expenses.
Democrats are more likely than Republicans to say they’re cutting back or aggressively looking for deals, but many Republicans say they’re tightening their belts, too.
About four in 10 Republicans say they’re hunting for bargains more than usual, and a similar share say they’re buying fewer nonessential items.
Consumer spending has remained relatively resilient overall, but some shoppers told the Associated Press tariffs are changing how — and where — they spend.
They described buying fewer imported goods, sticking closer to home or avoiding discretionary purchases altogether.
The negative mood isn’t limited to the holidays. Looking ahead, few Americans expect a meaningful economic rebound in the near term.
About four in 10 adults say they think the economy will be worse next year. Roughly three in 10 expect conditions to stay about the same. Only about two in 10 say they believe the economy will improve, with Republicans far more likely than Democrats to express optimism.
That marks a slide in confidence from 2024, when a larger share of Americans believed the following year would be better economically.
The poll underscores the political challenge facing Trump as he heads toward midterm elections. Inflation and affordability were central issues in his campaign, but the data shows little change in how Americans feel about their financial footing.
White House officials have signaled plans for Trump to travel the country to promote his economic agenda and reassure voters.
The AP-NORC poll surveyed 1,146 US adults from Dec. 4 to Dec. 8. The margin of sampling error was plus or minus 4 percentage points.
