Good, mad and ugly: the US economy’s performance under Trump – in charts
According to Donald Trump’s White House, the US economy is booming, inflation is dead and jobs are surging.A blizzard of economic reports has cast a pall on such claims in recent days.This week’s data on Trump’s early economic record was mixed – good, mad and ugly – with jobs numbers so weak he reached for the catchphrase he once used to build himself into a reality TV star: you’re fired.The picture is chaotic, with robust headline growth in the world’s largest economy, wild swings in trade, and a remarkable slowdown in the labor market.For six months, Trump has staged an extraordinary campaign to overhaul the global economy and extract concessions from Washington’s allies and rivals by threatening and imposing steep tariffs on their US exports.
But the unpredictable, erratic rollout of this strategy has already had bizarre consequences.On the surface, at least, this week’s deluge of data opened with good news: the US economy returned to growth in the second quarter, with gross domestic product (GDP) – a broad measure of economic health – expanding at a rate not seen since last summer.But this followed an unexpected contraction in the first quarter, and underlined some more concerning figures, such as a 15.6% drop in private domestic investment.Businesses have been struggling to keep up with the hour-by-hour jerks and jolts on sweeping economies policies.
Yes, there was good growth in the last quarter but in the first six months, the US economy grew at a mediocre 1.2%.The Wall Street Journal called it “the weirdest GDP report ever”.Delve a bit deeper, and you start to see how the US economy is grappling with a series of extraordinary forces as Trump hammers out his trade strategy.Firms spent much of the first quarter waiting for the president to reveal his plans for tariffs: which countries would be targeted, at what rates, and when.
They stockpiled, triggering an unprecedented surge in imports that pushed growth into the red,In the second quarter, however, as Trump started to ramp up his economic attacks, imports tumbled at an equally astonishing pace,Net exports – how much a country exports more than it imports – boosted GDP,This is Trump’s least favorite chart,Despite his many public demands, threats and attacks, the Federal Reserve has not yet cut interest rates this year.
Why? Jerome Powell, the central bank’s chair, has repeatedly argued it should wait and see the impact of the president’s trade strategy before moving.Fed officials are worried that inflation – despite Trump’s claims that it has collapsed on his watch – has actually remained stubborn, and might rise as a result of his tariffs.This has gone down extremely poorly in the White House, where officials are counting down the weeks until Powell’s term as chair ends next May.Data released on Friday fundamentally changed the way US policymakers and politicians think about the economy.Until then, many inside the Fed thought everything was broadly ticking over nicely – and Trump administration officials claimed they were overseeing a boom in activity.
But July’s employment report revealed far fewer jobs were created that month than economists had expected, and revised down estimates for May and June by an astonishing 258,000.Job creation has stalled.“Look, this jobs report isn’t ideal,” Stephen Miran, chairman of the White House council of economic advisers, told CNN, before suggesting that fading uncertainty around trade and fiscal policy would lead to significant improvement.“It’s all going to get much, much better from here,” he added.
Apple quietens Wall Street’s fears of China struggles and slow AI progress
Apple has been under pressure this year. It’s playing catch-up to its fellow tech giants on artificial intelligence, it’s seen its stock fall by double digits since the year began, it closed a store in China for the first time ever this week, and looming US tariffs on Beijing threaten its supply chain. On Thursday, the company released its third-quarter earnings of the fiscal year as investors scrutinize how the iPhone maker might turn things around.Despite the gloomy outlook, the company is still worth more than $3tn, and it beat Wall Street’s expectations for profit and revenue this quarter. Apple reported a huge 10% year-over-year increase in revenue to $94
Amazon fails to calm tariff worries with worse-than-expected financial outlook
Amazon failed to quiet concerns over how Donald Trump’s sweeping tariffs would affect its e-commerce business as it reported its latest quarterly results on Thursday. Wall Street’s affinity for the tech giant faltered in response.The top line numbers from Amazon’s second quarter earnings report exceeded Wall Street’s projections. The tech company beat expectations with its revenue up 13.3% year over year to $167
How will Australia’s under-16s social media ban be enforced, and which platforms will be exempt?
Australians using a range of social media platforms including Facebook, Instagram, YouTube, Snapchat and X will need to have their age checked to ensure they are 16 or older when the social media ban comes into effect from early December.Sign up: AU Breaking News emailHow will it work? And what information will people need to hand over?From 10 December, new laws will apply to platforms that meet the government’s definition of an “age-restricted social media platform”, which has the sole or significant purpose of enabling social interaction with two or more users, and which allows users to post material on the service.The government has not specified by name any platforms that will be included in the ban, meaning any site that meets the above definition could be included except if they meet the exemptions released on Wednesday.The prime minister, Anthony Albanese, has said that the covered platforms include – but are not limited to – Facebook, Instagram, X, Snapchat, and YouTube.The communications minister, Anika Wells, said these platforms would be expected to take reasonable steps to deactivate accounts for users under 16, prevent children registering new accounts, check ages, and also prevent workarounds to bypass the restrictions
Met police to more than double use of live facial recognition
Britain’s biggest police force is to more than double its use of live facial recognition to up to 10 deployments a week.The move by the Metropolitan police comes as it restructures to cover the loss of 1,400 officers and 300 staff amid budget shortages.Live facial recognition – which involves the matching of faces caught on surveillance camera footage against a police watchlist in real time – will now be used up to 10 times a week across five days, up from the current four times a week across two days.The tactic will be deployed at the Notting Hill carnival over the August bank holiday.An older form of the technology was trialled at the event in 2016 and 2017
Zuckerberg claims ‘superintelligence is now in sight’ as Meta lavishes billions on AI
Whether it’s poaching top talent away from competitors, acquiring AI startups or proclaiming that it will build data centers the size of Manhattan, Meta has been on a spending spree to boost its artificial intelligence capabilities for months now.The massive splurge is paying off, according to Meta’s chief executive. In a new memo posted on Wednesday ahead of the company’s quarterly earnings report, Mark Zuckerberg, describes his ambitions for developing what he calls “superintelligence”.“Over the last few months we have begun to see glimpses of our AI systems improving themselves,” Zuckerberg wrote. “The improvement is slow for now, but undeniable
Wall Street delighted with Microsoft as it spends $100bn on AI
Microsoft, the world’s second-most valuable company, is dumping enormous sums of money into its artificial intelligence efforts. At the same time, the company is earning money hand over fist. Investors are thrilled.The enterprise software giant reported fiscal fourth-quarter results that exceeded expectations on Wednesday as the company races to acquire datacenters and talent, which continues to be investigated by investors. The company predicted its capital expenditure for the next fiscal year would top $100bn, a 14% increase from the year prior
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