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Sun, 03 May 2026

Sun, 03 May 2026 Voters will judge Trump on the economy - how is it doing?

How much Donald Trump can do with the time he has left as president will depend massively on the cost of living.

* US economy grew by 2% on an annualized basis in the first quarter of 2026
* GDP figures show the economy motoring along despite Iran war and energy shock
* Consumer spending grew by 1.6% on an annualized basis, but economists attribute overall growth to tech investment linked to AI
* US tariffs and Iran war led to higher prices for American shoppers, with inflation at a near two-year high of 3.3%
* Oil prices hit a four-year high of $126 per barrel due to Strait of Hormuz closure, with Americans paying over $4.30 per gallon for fuel
* Interest rate cut delayed until 2027 due to higher oil prices and expectations of long-term blockade
* Major US indices have made back losses seen in the early days of the war, with Nasdaq Composite gaining around 10% since start of conflict