Other key economic metrics strong, White House claims
by VDC staff
New economic data released this week shows the U.S. economy is gaining strength in 2025, with multiple indicators exceeding expectations and signaling a return to stability and growth.
According to a statement released Monday. January 21 by the White House, a string of key economic reports reveal that inflation is cooling, production is rising, consumer confidence is climbing, and jobless claims are falling—trends the White House claims are the result of President Trump’s economic policies during his second term.
Low inflation and steady prices
Core inflation remained at 2.1%—right in line with the Federal Reserve’s target—for the fifth consecutive month. According to the administration, that marks every full month since President Trump’s return to office, reflecting pricing stability last seen during his first term.
Wholesale prices also remained flat in the latest report, defying predictions of a slight increase and signaling progress in addressing what officials describe as the “Biden-era inflation crisis.”
Growth in industrial output and manufacturing
Industrial production beat forecasts with a stronger-than-expected increase, while manufacturing output rose by 1.8% in the first five months of 2025. That’s in contrast to a 0.7% decline in the last five months of the previous administration, according to government figures.
Record-breaking tariff revenues
The administration also touted a record $120 billion in customs and tariff revenues collected since January, including $7 billion in the past week alone. That revenue helped fuel the first federal June budget surplus in nearly a decade, the White House said.
Strong consumer spending and sentiment
Advance retail sales in June exceeded forecasts, reflecting continued consumer confidence amid lower inflation and wage growth. July’s consumer sentiment index rose sharply as inflation expectations for the coming year fell.
Labor market strengthens
Initial claims for unemployment benefits dropped for the fifth week in a row, reinforcing earlier signs of labor market resilience. The data complements a strong jobs report issued earlier this month.
Housing market shows life
The housing sector is also showing signs of recovery. Both housing starts and permits for new construction climbed in June, beating market expectations and suggesting renewed builder and buyer optimism.