While U.S. President Trump claims the economy is entering a “golden age,” voters remain deeply concerned about the impact of rising living costs and inflation, highlighting a growing disconnect ahead of the midterm elections. Manufacturing and employment have shown signs of improvement, but the burden of higher gasoline prices and other costs remains substantial.
With less than 3 months to go before the midterm elections, Trump is highlighting his economic record, but voters see the economy differently. Household cost pressures have intensified, while approval of the administration’s response to inflation remains low. The White House believes it has a case to make, but some Republicans are also calling for new economic policies, including further tax cuts.
Economic indicators are mixed. Unemployment is low and consumer spending remains solid, but the effects of soaring energy prices continue. Gasoline prices have exceeded $4 per gallon, and mortgage rates remain high. Inflation is trending upward again due to the war in Iran.
Voters place particular importance on the cost of living, with inflation and rising prices ranking among their main concerns. Opinion polls put approval of Trump’s administration at around 39%, while approval of its handling of inflation is approximately 30%. Republican candidates are caught in a bind, with calls emerging for economic policies such as further tax cuts.
Manufacturing is showing signs of improvement, including a high ISM index, but there are also reports of restrained hiring and capital investment amid rising costs and an uncertain outlook. The White House expects a recovery in factory construction, while some observers believe that many of the investment plans have yet to be finalized. Overall, assessments continue to suggest that the benefits of the economy are not being distributed evenly.