Trump vs. Biden: Economies Compared as Consumer Sentiment Hits Record Low

President Donald Trump received a warning sign about how Americans view the state of the economy, as the University of Michigan on Friday reported that consumer sentiment hit its lowest point since it began measuring it in 1960 amid rising gas prices and ongoing concerns about the cost of living.

Americans' perception of the economy has major implications for Republicans and the balance of power in this year’s midterm elections. Economic concerns sank Democrats in the 2024 election as Trump sought to cast himself as the candidate best positioned to take on high inflation. But those concerns persist more than a year into his term, and his approval rating has sunk amid discontent with the cost of living. This threatens to sink Republicans as they face a difficult national environment in November.

In 2022, former President Joe Biden faced a similar situation-Americans were unhappy with the economy ahead of the midterms, raising red flags for Democrats in those elections.

Still, Trump and Biden have faced different economic challenges-Biden was tasked with guiding the economy out of a COVID-era slump, while Trump's administration is dealing with the rise of AI and the Iran war.

Here is a look at how the Trump and Biden economies have differed in the spring ahead of their midterm elections.

Newsweek reached out to the White House for comment via email.

Consumer Sentiment

Consumer sentiment, a key measure of how Americans view the economy, is down significantly, suggesting Americans have a pessimistic view.

"The cost of living continues to be a first-order concern, with 57 percent of consumers spontaneously mentioning that high prices were eroding their personal finances, up from 50 percent last month," Surveys of Consumers Director Joanne Hsu wrote in the report.

That drop was especially pronounced among lower-income consumers.

"These groups are more sensitive to increases in the cost of gas and other essentials," she wrote.

Sentiment fell to 44.8 in the new report on Friday, compared to 58.4 in May 2022-the same point in Biden’s term.

Other metrics offered differing signals about the state of the economy in May 2026 versus May 2022.

GDP

Gross Domestic Product (GDP) increased 2 percent in the first quarter of 2026, according to the U.S. Bureau of Economic Analysis. An increase in consumer spending, investment and exports contributed to the rise in GDP.

In the first quarter of 2022, GDP grew 2 percent.

Inflation

Inflation has remained at the forefront of Americans' economic concerns since the COVID-19 pandemic, which sparked a global rise in prices, which haven’t fallen back to their pre-pandemic levels. Trump said earlier this year at the World Economic Forum that the United States has "virtually no inflation."

But the inflation rate sat at 3.8 percent in April, up from 2.4 percent in January, according to the Bureau of Labor Statistics.

In April 2022, the U.S. inflation rate was 8.3 percent, up from 7.5 percent in January. It would soon peak at 9.1 percent in June 2022 before steadily declining over the next few years. Despite that decline, prices remained high and became a major challenge for the Biden administration.

As the inflation rate begins to tick up, the Trump administration is now facing similar scrutiny over the cost of living.

Unemployment Rate

The unemployment rate remains higher compared to 2022, according to the Federal Reserve of St. Louis, reaching 4.3 percent last month compared to 3.7 percent in April 2022.

Housing

Housing costs, however, were slightly lower compared to the same point during the Biden administration. The average house sold for $403,200 in the first quarter of 2026, compared to $413,500 in the first quarter of 2022, according to the St. Louis Fed.

Gas Prices

Gas prices have surged amid the war with Iran and the closure of the Strait of Hormuz but are slightly lower compared to 2022, according to the American Automobile Association's update on May 21.

"The national average for a gallon of regular is at $4.56, up 3 cents over last week and $1.38 higher than this time last year,” the update reads. “Current prices are close to what drivers were paying 4 years ago, when the national average on Memorial Day was $4.61."

It warned that gas prices are "likely to remain elevated as the summer travel season gets underway."

Roughly 20 million barrels of oil per day, about one‑fifth of global petroleum consumption, normally pass through the strait, according to U.S. Energy Information Administration data. Its closure amid the war has put additional pressure on global oil markets, leading to higher prices in the U.S. and globally.

Stock Market

Trump has pointed at the stock market as a metric of economic success.

As of May 21, the Dow Jones Industrial Average closed at 50,285.66, up nearly 5 percent since the beginning of the year. On May 20, 2022, it closed at 31,261.90, down about 14 percent from the start of that year.

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This story was originally published May 22, 2026 at 3:08 PM.