Consumer sentiment is a fickle thing. Between macroeconomic factors, such as the state of the global economy, and personal finance issues, such as losing a job, Americans can rapidly change their confidence about their economic condition.
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In 2023, for example, Americans were generally positive. According to a CivicScience survey at the time, 38% expected improvement in their personal finances over the subsequent six months. But with the uncertainty over tariffs and the economy as a whole in 2025, some of that optimism has worn off.
Here’s a look at the factors affecting Americans’ perceptions of their own financial situation and how they tend to change over time.
How Do Americans Feel About Their Finances in 2025?
According to Gallup, as of April 2025, Americans have decidedly soured on the economy, the stock market and their own personal finances. In fact, the Gallup data shows that a record-high 53% of Americans now believe their financial situation is actually getting worse.
This is the first time since 2021 that a majority of Americans have felt pessimistic about their finances and marks a decided change from January 2025, when the majority were much more positive about the stock market and the economy.
How much have opinions changed? Here’s an overview of the Gallup poll results:
- The stock market: In January, 61% of respondents felt the stock market would go up, but in April, 58% expected the market to fall.
- Inflation: In January, 52% of respondents expected inflation to go up, but that percentage increased to 63% by April.
- Interest rates: The percentage of Americans expecting inflation to rise jumped from 52% in January to 63% in April.
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Perhaps most significantly, a record high of respondents said that their financial situation is getting worse. More than half called their financial situation either fair or poor, with only 10% regarding it as excellent. Similarly, Americans’ outlook for the future has soured, as well. The Gallup research shows that a record-high 53% of respondents see their financial position as getting worse, versus just 38% seeing a major improvement.
How Much Do Tariffs Play a Role?
It’s likely more than a coincidence that Americans changed their attitudes about the economy and their finances shortly after President Donald Trump announced his “Liberation Day” tariffs. If nothing else, the uncertainty regarding exactly what the final tariff policy will look like — and how it will affect American businesses — has diminished the confidence of the American consumer over the short run.
But if the tariffs remain in place, keep inflation elevated and slow domestic growth, as predicted by the Peterson Institute for International Economics and others, it could hurt both the job market and the stock market. This is likely the concern reflected in the Gallup poll results.
The Long-Term Trend Is Usually Up — With Some Caveats
In spite of any short-term macroeconomic factors, Americans tend to build wealth as they age. For one thing, they have more time to save and invest, and compound interest does an amazing job at increasing net worth. This is particularly true for homeowners and those who invest in retirement plans like IRAs and 401(k) plans.
For another, Americans tend to earn more money as they age and become more valuable as workers within their chosen fields. Peak earnings usually occur during their 50s and 60s.
Although there are times when the average net worth of Americans decreases, such as during recessions, over the course of a lifetime, most Americans steadily increase their net worth. This is the bedrock reason why most Americans are generally optimistic about their financial futures.
While there may be some short-term pain ahead for both the economy and Americans’ personal financial situations, attitudes about the future will likely improve if and when the uncertainty regarding tariffs dissipates.
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This article originally appeared on GOBankingRates.com: Why Over a Third of People Expected To Get Richer Over the Next Six Months — But Now See a Darker Future
