The U.S. economy is faring worse than previously thought, according to a report released Thursday by the U.S. Bureau of Economic Analysis.
Real GDP only grew 1.6% during the first three months of the year, down from the 2% the government originally reported, according to the report. The 0.4 percentage point revision reflects “downward revisions to investment and consumer spending.”
This decline is accompanied by Americans’ growing concern over the future of the economy.
Gallup’s Economic Confidence Index (ECI) for May dropped to -45, a seven-point decrease from its index in April, which is the lowest figure since October 2022.
Only 16% of Americans describe economic conditions as “excellent or good,” according to Gallup. Forty-nine percent rate conditions as poor. Seventy-six percent of U.S. adults say economic conditions are worsening — the highest number since the same 76% in May 2023. (RELATED: Voters Now Trust Democrats More Than GOP On Economy Due to Iran War)
NEW YORK, NEW YORK – MAY 26: Stock market numbers are displayed on the floor of the New York Stock Exchange during morning trading on May 26, 2026 in New York City. (Photo by Michael M. Santiago/Getty Images)
Voters’ concern has increased across the board, according to Gallup.
Republican’s Economic Confidence Index (ECI) score dropped to +22 points, the lowest recorded number for the party during President Donald Trump’s second term. It is also a decrease of 33 points from where it stood in February. Democrats’ score of -80 and Independents’ score of -58 have also fallen to the lowest point since Trump returned to the White House.
Americans are increasingly citing inflation and the high cost of living as the most important problem facing the country. Fifteen percent described this as the most important problem in the May poll, increasing from only 8% in February. Inflation now stands as the second most-cited problem, falling behind the government, which is the top-ranked issue at 26%.
Concern about gas prices has also risen, with 4% citing it as the nation’s most important problem.
Food and energy prices continue to rise with the ongoing Iran war. The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.6% on a seasonally adjusted basis in April after increasing 0.9% in March, according to the U.S. Bureau of Labor Statistics (BLS). The all-items index leapt 3.8% for the “12 months ending April” before seasonal adjustment.
Gallup concluded that the economy was “markedly darker than it was at the start of the year” and seemed to be returning to 2022-level lows.
Trump painted a different picture of the economy at a Cabinet meeting on Wednesday. He praised his administration’s tax cuts, stock market records and 401K growth.
“We passed the largest tax cuts in American history,” Trump said.
“The typical family got tax refunds of nearly almost close to $5,000,” he added.
Trump also referenced the stock market’s “68 all-time record highs” since the election and claimed the average 401K has increased $30,000 since he took office.
Editor’s note: This piece was updated to correct an editing error on the all items index. The correct month was April, not March.