Trump’s ‘roaring’ economy meets a rough start to 2026: What the latest numbers show

But the strikes against Iran that began Feb. 28 have, for the moment, crushed that narrative. Prices at the pump have jumped 19% over the past month to a national average of $3.45, according to AAA. The investment bank Goldman Sachs warned in an analyst note that, if higher oil prices persist, inflation could rise from its 2.4% reading in January to 3% by the end of the year.

The administration is banking on plans to contain any energy price increases, essentially betting that either the conflict will end shortly or the administration can succeed in getting more tankers through the Strait of Hormuz.

“The president has been clear about short term disruptions due to Operation Epic Fury even as U.S. and allied forces make stunning progress against the Iranian terrorist regime,” said White House deputy press secretary Kush Desai. “The long run trend, however, has been clear: President Trump’s economic agenda continues to unleash robust private sector job, investment, and economic growth that’s driving America’s resurgence.”

Stocks are off their highs

“You know, we set the all-time record in history with the Dow going to 50,000,” Trump said Thursday at the White House.

This frequently repeated talking point has grown stale. The Dow Jones Industrial Average, one of Trump’s preferred measures of success, has dropped 5% over the past month. Stocks are up during his presidency, just as they were previously when Democrat Joe Biden was president. The recent decline could be reversed if the war with Iran ends and companies see solid profits over the next year and beyond. The recent dip, however, should be a warning sign as the administration has stressed the importance of more people investing in the stock market through vehicles such as “Trump accounts” for children.

The stock market has become a barometer of how people feel about the economy, with stock investors tending to have more confidence and those without money in the markets being more pessimistic.

Joanna Hsu, the director of the University of Michigan's surveys of consumers, noted that in February a “sizable” increase in sentiment among people owning stocks “was fully offset by a decline among consumers without stock holdings.”

Productivity is up, but workers aren't benefiting

Trump can point to a win in that the economy has become more productive — generating more value for each hour of work. That is a positive sign for long-term growth in the U.S. and a reflection of its strong tech sector.

Business sector labor productivity climbed 2.8% in the fourth quarter of last year, the Labor Department reported Thursday. But the challenge is that the gains might not be spread to workers in the form of higher pay as labor's share of income last year fell to the lowest level on record, noted Mike Konczal, senior director of policy and research at the Economic Security Project, a nonprofit aligned with liberal economic issues.

Economy grew at a faster pace under Biden

“Under the Biden administration, America was plagued by the nightmare of stagflation, meaning low growth and high inflation — a recipe for misery, failure and decline," Trump said at the World Economic Forum in Davos, Switzerland, in January.

The scoreboard tells a far different story, one that makes Biden's track record in 2024 look better than Trump's performance last year. The U.S. economy grew at a 2.8% pace during Biden's last year, compared with 2.2% under Trump in 2025.

As for inflation, the primary measure used by the Federal Reserve is the personal consumption expenditures price index. It was 2.6% in both 2024 and 2025.

Trump has staked his economic argument on doing better than Biden. But while he has avoided the inflation spikes that haunted Biden's presidency, he has not delivered stronger growth or more hiring.