How is the US economy really doing under President Trump?
President Donald Trump has been boasting about the performance of the US economy ahead of the midterm congressional elections, claiming he has boosted incomes, reduced inflation and created jobs.
The latest data shows US GDP - which is how economists measure the size of the US economy - currently expanding at an annualised rate of 2.2%.
President Donald Trump has been boasting about the performance of the US economy ahead of the midterm congressional elections, claiming he has boosted incomes, reduced inflation and created jobs.
The growing deficit is also one of the reasons the US government gets charged more to borrow money in financial markets.
The US growth rate has been faster than was forecast by the International Monetary Fund (IMF) in the immediate wake of Trump's announcement of a swathe of new tariffs on goods coming into the US on 2 April 2025.
Spending on building data centres (excluding the IT hardware to go in them) by US businesses in August 2026 was $5bn, almost double the monthly rate when Trump returned to office.
Trump predicted his tariffs would result in America being "flooded with jobs" as manufacturing firms set up new factories on US soil to avoid their products being taxed at the border.
Trump has repeatedly said: "We have the hottest country anywhere in the world." While the overall US economy is faring better than many expected after Trump launched his sweeping "Liberation Day" tariffs in 2025, there's evidence those import taxes and the impact of the US-Israel war with Iran have pushed up inflation, with the harmful effects felt by most American households.
The US economy has also been heavily supported in recent years by American technology companies making massive investments in AI, including by constructing data centres around the country.
The US economy is also being helped by an AI investment boom, and could falter if that spending were to dry up.
BBC Verify has looked at whether the evidence supports the president's claims.
What happened
The latest data shows US GDP - which is how economists measure the size of the US economy - currently expanding at an annualised rate of 2.2%.
President Donald Trump has been boasting about the performance of the US economy ahead of the midterm congressional elections, claiming he has boosted incomes, reduced inflation and created jobs.
What changed
The growing deficit is also one of the reasons the US government gets charged more to borrow money in financial markets.
The US growth rate has been faster than was forecast by the International Monetary Fund (IMF) in the immediate wake of Trump's announcement of a swathe of new tariffs on goods coming into the US on 2 April 2025.
Who is affected
Spending on building data centres (excluding the IT hardware to go in them) by US businesses in August 2026 was $5bn, almost double the monthly rate when Trump returned to office.
Trump predicted his tariffs would result in America being "flooded with jobs" as manufacturing firms set up new factories on US soil to avoid their products being taxed at the border.
Why it matters
Trump has repeatedly said: "We have the hottest country anywhere in the world." While the overall US economy is faring better than many expected after Trump launched his sweeping "Liberation Day" tariffs in 2025, there's evidence those import taxes and the impact of the US-Israel war with Iran have pushed up inflation, with the harmful effects felt by most American households.
The US economy has also been heavily supported in recent years by American technology companies making massive investments in AI, including by constructing data centres around the country.
Attribution
BBC News: President Donald Trump has been boasting about the performance of the US economy ahead of the midterm congressional elections, claiming he has boosted incomes, reduced inflation and created jobs.