Woofun AI reports that US economic sentiment has deteriorated to a two-year low, with 61% of respondents expressing pessimism about the current situation and future trends. This marks the highest level of concern since December 2023, while only approximately 25% hold an optimistic outlook. The survey indicates that most respondents attribute economic pressure to President Trump’s policies, with 60% dissatisfied with his handling of economic issues compared to 38% approval.

Consumer behavior reflects this downturn, as 47% are reducing purchases of necessities like food and healthcare, an increase of 6 percentage points from April.

Additionally, about two-thirds of consumers are cutting back on non-essential expenses. Data from Bain & Company and NielsenIQ shows US grocery purchases dropped 1.8% year-over-year in June, reversing a previous 0.1% increase. Four-fifths of consumers are attempting to cut expenses, with many switching to cheaper brands or reducing purchase quantities.