Americans are more pessimistic about the nation’s economic outlook and overall direction than they have been at any time since Obama’s first two months in office

At a time of rising gas prices, stubborn unemployment and a debate in Washington over the federal government’s ability to meet its future obligations, the latest New York Times/CBS News poll presents stark evidence that the slow, if unsteady, gains in public confidence earlier in 2011 that a recovery was under way are now all but gone. Capturing what appears to be an abrupt change in attitude, the survey shows that the number of Americans who think the economy is getting worse has jumped 13% in just one month. Though there have been encouraging signs of renewed growth since Fall 2010, many economists are having second thoughts, warning that the pace of expansion might not be fast enough to create significant numbers of new jobs. Disapproval of Obama’s handling of the economy has never been worse — up to 57% of Americans — a warning sign as he begins to set his sights on re-election in 2012. For all the talk of cutting the deficit in Capitol Hill and Wall Street, only 29% said it would create more jobs — the issue of greatest concern — while 27% believed it would have no effect on the employment outlook, and 29% said it would actually cost jobs. In what Republicans can take as a positive sign as they seek a more limited government, 55% of poll respondents said that they would rather have fewer services from a smaller government than more services from a bigger one, as opposed to 33% who preferred the opposite, a continuation of a trend in Times/CBS polls. And slightly more Americans approve than disapprove of a proposal by Representative Paul D. Ryan of Wisconsin to change Medicare from a program that pays doctors and hospitals directly for treating seniors to one in which the government helps seniors pay for private plans, though that support derived mostly from Republicans and independents, not Democrats. Twice as many respondents said that they would rather see a reduction in spending on federal programs that benefit people like them than an increase in taxes to pay for such programs. Obama’s job approval remains below a majority, with 46% saying that they approve of his performance in office as opposed to 45% who do not. And support for his handling of the military campaign in Libya has fallen off sharply: 39% approve and 45% disapprove.