President Joe Biden's approval rating has fallen to its worst level of 2023 as even Democrats turn cooler toward his handling of the economy, the new IBD/TIPP Poll finds.
The May IBD/TIPP Poll finds that 43% of Americans age 18 and up approve of how Biden is handling the presidency, and 49% disapprove. Biden's net-approval rating of -6 points is a big step down after being flat the two prior months, with a 45%-45% split.
Biden Approval Rating Details
The slippage in Biden's approval rating comes amid weaker support among members of his own party. May's IBD/TIPP Poll showed 74% of Democrats now give Biden positive marks, while 17% disapprove of his job performance. That's down from 76%-16% in April and 83%-10% in March.
Biden's weak standing among independents continues to worsen. Now 63% of independents pan Biden's job performance and 27% approve, vs. 56%-28% in April and 60%-22% in March.
Meanwhile, Republican disapproval of Biden is little changed at 85%-12 vs. 83%-11% and 83%-12% the prior two months.
Biden's approval rating remained deep underwater among those earning less than $75,000, with 39% approval and 50% disapproval. That's little changed from 39%-50% in April. The difference came in diminished support among those earning at least $75,000, who now approve of Biden by a 54%-42% margin vs. 59%-35% last month.
Strong Jobs Report Tests Fed Rate-Hike Pause
Approval Of President Biden's Policies
The crack in Biden's support appears tied to the economy. Net approval of Biden's economic policies deteriorated to -17 points from -8 in April and -9 the prior two months. Now 47% of adults disapprove of Biden's economic stewardship and just 30% approve. That's a deterioration from 43%-35% last month and 44%-35% in February and March.
This month's drop in support was particularly notable among Democrats, who now back Biden's economic policies 53%-20% vs. 61%-14% in April.
Inflation is undoubtedly a major source of Biden's poor economic reviews. U.S. employers added 12.7 million jobs in the first 27 months of Biden's presidency, Labor Department data shows. Meanwhile, the average hourly wage has grown a solid 4.4% over the past year. Yet inflation has eaten away all of that increase and more for many Americans.
The IBD/TIPP Poll finds that 23% of workers say their wages have kept pace with inflation, down from 28% in April. Meanwhile, 52% say wages haven't kept up with inflation, up from 45%.
The IBD/TIPP Financial-Related Stress Index dipped to 67.2 from April's 67.9, which was the highest since last October. Readings above 50 reflect rising stress.
The uptick in financial stress comes amid rising layoffs and following expiration of a $95 monthly pandemic boost to Supplemental Nutrition Assistance Program benefits for millions of households.
Investors Back Biden
Biden's approval rating among investors remained strong, though narrowing to 59%-36% from 60%-37% in April and 62%-34% in March. IBD/TIPP counts as investors those respondents who say they have at least $10,000 in household-owned mutual funds or equities.
On Friday, the S&P 500 closed near the top of its trading range since mid-February, having recouped all its losses since a banking crisis erupted in March. The Federal Reserve last week adopted a wait-and-see approach to further rate hikes because it expects tighter bank credit to slow economic growth to a crawl later this year.
Through Friday, the Dow Jones was down 8.5% from its all-time closing high in January 2022, but up 17.2% from its bear market closing low on Sept. 30. The S&P 500 has rallied 15.6% from its Oct. 12 closing low, but remains 13.8% below its peak. The Nasdaq composite has climbed 19.8% from its 52-week low on Dec. 28, but is still 23.8% off its November 2021 high.
Since Election Day on Nov. 3, 2020, the Dow is up 22.5%, the S&P 500 22.8%, and the Nasdaq 9.6%.
Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.
The president's problem is among non-investors, who now disapprove of Biden's job performance by a 55%-36% margin vs. 50%-36% in April.
The May IBD/TIPP Poll reflects online surveys of 1,480 adults from May 3-5. The results come with a credibility interval of +/- 2.6 points.
Presidential Leadership Index
The IBD/TIPP Presidential Leadership Index dived 4 points to 46.3, the lowest since December. Readings above 50 are net positive, while below-50 readings are negative. The Presidential Leadership Index combines survey readings on how American adults feel about Biden's personal qualities, presidential performance, and leadership attributes. Biden's favorability slid to 48 from 52.2. Biden's job approval fell to 47 from 50, while the leadership index sank to 43.9 from 48.7.
Please follow Jed Graham on Twitter @IBD_JGraham for coverage of economic policy and financial markets.
