Economic Sentiment Shifts Under Trump Administration
A year into the Trump administration, many Americans are gradually emerging from the economic struggles that characterized the end of the Biden administration. Increasing numbers of voters are feeling more positive about the economy, and a growing share believe their own financial situations are improving.
According to recent data, the percentage of people who felt the economy was on the right track was around 30-32% in September and October 2024, just ahead of the election. By January 2026, this figure had risen to 38%.
The enhancement in personal finances is becoming more evident. In a Harvard CAPS-Harris poll from September 2024, 28% reported that their financial situation was improving, while 48% felt it was deteriorating. Fast forward to October 2024, and 26% felt their finances had improved. By January 2026, 35% reported bettering financial circumstances, compared to 40% who indicated a decline.
Voter preference also appears to lean toward a policy agenda resembling Trump’s. When given two broad economic policy options, 60% favored approaches like reduced government spending, lower taxes, stronger trade agreements, lower prescription drug costs, and tighter immigration controls. Conversely, 40% supported higher government spending, liberal immigration policies, increased taxes on high earners, and more health care subsidies.
In terms of economic management, voters were almost evenly split, with Trump and the Republicans not far behind the Democrats. A slight majority, 51%, expressed more confidence in Trump and the Republican Party to handle the economy, while 49% trusted the Democrats.
Many voters credit President Trump for the current economic climate. A notable 63% believe the state of the economy is primarily attributed to Trump’s policies, while 37% attribute it to the Biden administration’s policies.
Yet, the survey also contains results suggesting that some believe economic conditions haven’t improved since the election. Fifty-three percent claim the economy is worse now than during Biden’s term, while 47% feel it has gotten better.
Differences in economic perceptions along party lines might account for these contrasting views. For instance, 80% of Democrats see the economy as shrinking, and their median inflation expectation is around 5%. These beliefs stand in contrast to the official economic data. The economy is not shrinking; real GDP rose by 4.4% in the third quarter of 2025 and 3.8% in the second quarter. Additionally, inflation rates are much lower than what many Democrats expect, with consumer prices increasing by 2.7% in the year ending December 2025, which is roughly half of the 5% inflation rate they perceive.
Overall, the polling trends indicate that while Americans’ views on the economy have slightly improved since the late months of 2024, the enhancement in personal finance perception is more significant, though deep partisan divides persist.
