“It’s no surprise the leftovers of Biden’s economic disaster have been a drag on economic growth, but the underlying numbers tell the real story of the strong momentum President Trump is delivering. Robust core GDP, the highest gross domestic investment in four years, job growth, and trillions of dollars in new investments secured by President Trump are fueling an economic boom and setting the stage for unprecedented growth as President Trump ushers in the new Golden Age.” — Press Secretary Karoline Leavitt
Here are the facts:
- GDP is a backward-looking indicator. Today’s headline figure reflects the end of the Biden economic disaster, not the beginning of the economic boom that President Trump is delivering.
- January growth, especially in consumer spending — which has an outsized weight on the Q1 figure — was hampered by colder-than-usual weather and California wildfires, and mostly occurred before President Trump took office.
- Core GDP grew at a robust 3.0%. This signals strong underlying economic momentum that occurred after President Trump’s inauguration.
- Gross domestic investment soared by 22%. This is the highest in four years and comes as businesses and consumers — bolstered by rising take-home pay — fuel an economic boom.
- Monthly indicators, which capture growth trends at a much higher frequency, all point to accelerating growth AFTER President Trump took office. Private employment gains, consumer spending, capital investment, and aggregate hours worked have all accelerated since January, while inflation has decelerated.
- An unprecedented surge in imports due to tariff frontrunning contributed to most of the decline.
- The forward-looking indicators highlight the momentum that has occurred in anticipation of President Trump’s economic agenda. Exports still rose at a healthy 1.8% rate, implying no major disruption to flow of U.S. goods and services to our trading partners abroad.