In his first year in office, President Trump’s economy showed mixed results. The Gross Domestic Product (GDP) growth started off slow. In the first quarter of 2017, the GDP grew by only 0.7%, down from 2.1% in the last quarter of 2016. This weak growth was mainly due to slower inventory growth, which took away 0.9 points from the overall growth. Consumer spending also fell short, growing by just 0.3% during the same period, affected by late tax refunds and warm weather.
Job growth statistics presented a more positive picture over time. By 2025, nearly 7 million jobs had been created nationwide, notably exceeding projections. In March 2017, 98,000 jobs were added, which was below expectations, but February saw a stronger report with 235,000 new jobs. Manufacturing jobs increased by around 500,000, contributing to the overall growth in employment. However, the manufacturing sector experienced a 0.5% decline in employment from the previous year, reflecting ongoing challenges.
The unemployment rate reached a low of 3.5% during his first term, the lowest in fifty years. However, by December 2025, it had risen to 4.4%, showing a cooling labor market despite the job growth. Federal employment, on the other hand, dropped by 9% due to department buyouts and reductions.
Inflation remained a concern, with rates hitting 2.7% in December 2025. While this was below a 41-year high, it still exceeded the Federal Reserve’s target of 2%. Despite the slowdown in job growth, consumer spending continued, which indicated some resilience in the economy. However, consumer spending growth was unexpectedly low at 0.3%, influenced by delayed tax refunds and weather conditions.
However, the national debt increased by 39% during this time, reaching $27.75 trillion. Corporate tax receipts fell notably, contributing to a rising deficit that climbed to 3.9% of GDP in 2018.
