The poll also showed a wide lead for the Democratic Party over Republicans on the question of which party voters would prefer to control Congress -- although the GOP still holds a narrow advantage on the issues of Iraq and homeland security.
The poll released Wednesday showed 58 percent of those surveyed believed Bush is experiencing a long-term setback from which he is unlikely to recover, NBC reported.
"He's losing his grip on governance," said Democratic pollster Peter Hart, who conducted the survey with Republican Bill McInturff. "It's now a sense that we've seen the best that he's going to produce as president of the United States."
The 37 percent approval rating for Bush represents a two-point drop since the last NBC/WSJ poll, and a one-point decline from his previous low of 38 percent last November.
Just 26 percent of respondents surveyed said they believe the nation is headed in the right direction, a tie from the previous Bush administration low.