WASHINGTON (AP) — This holiday season is proving to be a challenging one for many Americans, as a significant number are tapping into their savings, searching for deals, and expressing concern over the state of the economy under President Donald Trump, according to a new AP-NORC survey.

The survey, conducted by The Associated Press-NORC Center for Public Affairs Research, shows that the majority of U.S. adults have noticed elevated prices for basic necessities like groceries, energy, and holiday items.

Approximately half of respondents indicated that buying holiday presents has become more difficult, prompting delays in major purchases and a reduction in spending on nonessential items.

This sentiment poses a challenge for President Trump, who campaigned on promises of reducing costs, yet continues to face dissatisfaction over persistent inflation—an issue that also plagued President Biden’s term. Poll results now mirror those from late 2022 during Biden’s presidency, suggesting continuing concerns. Trump’s tariff policies have also been linked to added inflation, contributing to economic unease and frustrating many Americans dealing with high costs.

The president has claimed inflation is not a concern and insists the economy is strong, even as Americans remain skeptical.

"When will people understand what is happening?" Trump remarked Thursday on Truth Social. "When will the polls show the strength of this moment, and how much worse things were just a year ago?"

Currently, 68% of Americans still describe the nation's economy as "poor," a figure unchanged from last December before Trump returned to office.

High prices continue to weigh on Americans

To strengthen public confidence in the economy, the administration intends to have Trump campaign across the nation ahead of the midterm elections. Meanwhile, during a visit to Pennsylvania, the president defended price hikes tied to his tariffs by suggesting Americans might consider buying fewer items like toys and school supplies. This view appears misaligned with the economic reality many report, including those who voted for him in the last election.

Sergio Ruiz, a 44-year-old from Tucson, Arizona, shared that he has been relying more on “buy now, pay later” plans to manage gift spending for his children. While not deeply political, Ruiz supported Trump in the most recent election and is hoping for lower interest rates to aid his real estate business. He believes raising incomes could help address affordability challenges.

"Prices are up. What else can you do? You just have to earn more," Ruiz said.

About half of survey participants said they are more focused on finding bargains than they typically are. Around 40% reported drawing from their savings more than usual.

Although Democrats are more likely than Republicans to say they’re reducing expenses or seeking lower prices, many Republicans are also budgeting cautiously. Roughly four in ten said they are searching more actively for deals and limiting nonessential purchases.

Economic views remain unchanged since Biden’s presidency

Public attitudes about the economy were similarly bleak during President Biden’s time in office back in 2022. That year, inflation soared to a rate not seen in decades. While inflation has since eased and now stands at around 3%, that figure still exceeds the Federal Reserve’s 2% goal, with job growth appearing sluggish.

The survey highlights that what matters most to many people is not just inflation’s pace, but the elevated cost of everyday items. A large majority—87%—said they have seen higher grocery prices recently. Around two-thirds also reported increased costs for electricity and holiday gifts, while nearly half noted higher fuel prices.

These numbers are only slightly improved from two years ago, despite the sharp decrease in inflation compared to its 2022 peak.

Consumer spending has remained steady overall, but changes tied to Trump’s tariff policies have led to adjustments for shoppers like Andrew Russell.

Russell, a 33-year-old adjunct professor from Arlington Heights, Illinois, used to buy unique gifts from global online shops. Now, due to tariff-related costs, he shops locally instead. "This year, I got only what I could pick up myself," he said.

Having voted Democrat in the last election, Russell voiced concern about the economy’s direction. He’s particularly wary of risks associated with heavy investment in artificial intelligence, which he suspects may lead to a market downturn.

Muted expectations for economic recovery in 2026

Looking ahead, optimism is scarce. A limited number of Americans foresee any meaningful economic improvement in the coming year — an indication that Trump’s mix of tariff policies, tax cuts, and international outreach has yet to boost public confidence. Trump argues that his policies will begin to yield greater benefits by 2026.

About four in ten expect the economy to worsen in 2025. Three in ten foresee no major change, while just two in ten are hopeful it will improve — with Republican respondents being slightly more optimistic.

The percentage of Americans expecting progress has dropped since last year, when approximately four in ten thought 2025 would be better than 2024.

Millicent Simpson, 56, from Cleveland, Ohio, anticipates tougher times ahead, particularly for those dependent on programs like Medicaid and SNAP. A Democrat supporter, she blames President Trump for increasing financial pressure on low-income families.

"He’s making things harder for us," she said. "He’s cutting support programs that help people across all age groups."

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The AP-NORC poll surveyed 1,146 adults between December 4 and 8. The sample was selected from NORC’s AmeriSpeak Panel to represent the U.S. population. The overall margin of error is ±4 percentage points.