December 17, 2025
2026 Economic Outlook, December 2025
More Than Six in Ten Say Economy is Not Working for Them Personally.... Economic Pessimism for 2026 Widespread
Americans have serious concerns about the economy and how these larger economic forces will influence their personal finances in 2026. Cloaked in a shroud of pessimism about what’s to come in the new year and persistent dissatisfaction with the direction of the country, more Americans now say the economy is not working well for them personally. A plurality of Americans say prices tops their list of economic concerns. Seven in ten residents nationally say the cost of living in their area is not very affordable or not affordable at all, and about one in three say their personal finances have deteriorated in the past year; nearly three in ten expect their financial picture to worsen in 2026. As Americans express concern, President Donald Trump’s approval rating on the economy is at its lowest point during either of his terms in office. His overall job approval rating is 38% among Americans.
A majority of Americans (57%) say, when thinking about what is ahead for the world in 2026, they are more pessimistic. 43% report they are more optimistic. This is a flip from just last year when 56% of Americans said they were more optimistic about the upcoming year, and 43% were more pessimistic.
While most Democrats (81%) and many independents (64%) say they have a bleak outlook for 2026, nearly three in four Republicans (74%) have a positive view toward the new year.
Americans remain pessimistic about the direction of the nation, in general, with 37% saying the country is moving in the right direction, and 63% reporting it is moving in the wrong one. This is little changed from Americans' views in October.
61% of Americans express that the economy is not working well for them personally, notched up from 57% in May. 39% say the economy is working well for them compared with 42% previously.
Views toward the personal impact of the economy splinter along party lines. 73% of Democrats and 64% of independents report the economy is not working well for them. While 63% of Republicans report the economy is working well for them, a notable 37% of the GOP say the economy is not on their side.
Regardless of party, a plurality of Americans (45%) say the economic issue which most concerns them right now is prices. Housing costs (18%) is distant second followed by tariffs (15%), job security (10%), interest rates (9%), and stock market volatility (4%).
Fewer Concerned about the Impact of Tariffs on Family Finances, But…
There has been a decline in the proportion of Americans who say they are either very concerned or concerned about the effect of tariffs on their personal finances. However, worry still remains. 67% of Americans have some degree of concern about the impact of tariffs on their financial situation, down from 81% in June. About one in three (33%) are not very concerned or not concerned at all about tariffs. This is up from 19% previously.
Cost of Living Excessive, Say Seven in Ten
70% of Americans say the cost of living in the area where they live is not very affordable or not affordable at all. This is the highest proportion of Americans with this view since Marist first asked this question in 2011. It also marks a significant upswing since last June in the proportion of Americans (45%) who thought they were being outpaced by the cost of living. In contrast, 30% of Americans, down from 55% previously, say their cost of living is affordable or very affordable.
Of note, only 4% of Americans think the cost of living in their area is very affordable compared with 23% who say it is not affordable at all.
More Than One in Three Americans Report Personal Finances Have Deteriorated in Past Year… Lack of Optimism for 2026 Exists
While a plurality of Americans (44%) say their personal financial situation has remained the same in the past 12 months, 35% report their finances have gotten worse. A little more than one in five (21%) say they have gotten better. When last reported in June, 40% of Americans thought their personal finances were status quo; 33% said they had gotten worse, and 27% thought they had improved.
When thinking about their personal finances in the coming year, 39% of Americans, up from 32% in June, believe they will remain about the same. However, 33% of residents nationally think their finances will improve in 2026. That’s a marked decline since June when 48% of Americans thought their personal finances would get better in the coming year. 29%, up from 20% previously, believe their financial reality will get worse.
Close to One in Four Americans Say Monthly Expenses Exceed Monthly Income
24% of Americans report that their expenses on a monthly basis are more than what they earn each month. Close to half (47%) report their monthly income about matches their expenses while 29% say their income consistently exceeds their expenses. Democrats (25%) and independents (22%) are more likely than Republicans to say their expenses are more than they earn monthly. However, 18% of Republicans say the same.
Slim Majority Express Dissatisfaction with Monthly Savings… Three in Ten Expect to Save Less Next Year
About one in three Americans (33%) are very or completely dissatisfied with the amount of money they currently have saved. An additional 19% are somewhat dissatisfied. 22% are completely satisfied or very satisfied with their savings, and an additional 26% are somewhat satisfied.
37% of Americans expect to save the same amount of money in 2026 as they have in 2025. 32% expect to save more money. 31% expect to save less.
Majority Concerned About Being Able to Pay for Healthcare in 2026
54% of Americans are extremely concerned or concerned that their household will be unable to pay for healthcare services in the coming year. 46% are not very concerned or not at all concerned about that possibility. Nearly two in three Democrats (65%) and a majority of independents (55%) express some degree of concern about affording healthcare services. 37% of Republicans share that concern.
Majority Think U.S. is in a Recession
A majority (52%) think the United States is in a recession. This is down from 62% in September of 2022. 47% do no think the country is in a recession. This is up from 32% previously.
Trump’s Economic Approval Rating Lowest of Either Term… Overall Approval Rating at 38%
President Donald Trump’s approval rating on how he is handling the economy is at its lowest point. 36% of Americans say they approve of how President Trump is handling the economy. 57% disapprove, and 8% are unsure. This is the lowest score he has received on his handling of the economy during his current term or his prior term in office. In July, the President’s approval rating on the economy was 39%. Independents have grown sour on the President’s approach to the economy. While 24% of independents approve of how he is dealing with the economy now, 32% did so in July.
When looking at President Trump’s job performance overall, 38% approve of the job he is doing, and 54% disapprove. The president’s job approval rating is little changed from November. However, there has been a slight decline in President Trump’s approval rating among Republicans (84% from 89% in November).
By nearly two-to-one, more Americans strongly disapprove (48%) of how President Trump is doing his job than strongly approve (25%).
Democrats Edge Out Republicans as the Party Perceived to Better Deal with the Economy
37% of Americans say the Democratic Party is the party to better handle the economy. 33% believe the Republicans are better equipped to address the economic forces at play. 12% view both parties as equally capable while 17% say neither the Democrats nor the Republicans can do a good job. This is a shift from September of 2022 when the Republican Party (39%) outpaced the Democratic Party (26%) in terms of the party who could better address the economy.
Methodology
This NPR/PBS News/Marist Poll national survey of 1,440 adults was conducted December 8th through December 11th, 2025, by the Marist Poll in partnership with NPR and PBS News. Adults 18 years of age and older residing in the United States were contacted through a multi-mode design: By phone using live interviewers, by text, or online. Results for all adults (n=1,440) are statistically significant within ±3.2 percentage points. Results for registered voters (n=1,261) are statistically significant within ±3.4 percentage points. For full methodology and tables, click on the Survey Data button below.