President Donald Trump sought in his first State of the Union address to sell Americans on the idea of a booming economy, falling prices, and soaring jobs, yet he faces a skeptical public with a much gloomier view. Barely 12 hours before his speech, in fact, The Conference Board, a business research group, released its latest consumer confidence report. It showed that overall confidence in the economy remains historically low, and is barely above the level it plunged to in the depths of the COVID recession. Other polling has yielded similar results: Only 39% of Americans approve of Trump's economic leadership, according to the latest Associated Press-NORC Center for Public Affairs Research survey.

A key measure of inflation fell to nearly a five-year low last month as apartment rental price growth slowed and gas prices fell, offering some relief to Americans still grappling with the sharp increase in costs of the past five years. Friday's report suggests inflation could be cooling, but it comes after the cost of food, gas, and apartment rents have soared since the pandemic, with consumer prices about 25% higher than they were five years ago. The increase in such a broad range of costs has become a high-profile political issue under the rubric of "affordability."

U.S. job openings fell to the lowest level in more than five years, another sign that the American labor market remains sluggish. The Labor Department reported Thursday that vacancies fell to 6.5 million in December — from 6.9 million in November and the lowest since September 2020. Layoffs rose slightly. The number of people quitting their jobs — which shows confidence in their prospects — was basically unchanged at 3.2 million.

Inflation declined a bit last month as prices for gas and used cars fell, a sign that cost pressures are slowly easing. The Labor Department said Tuesday that consumer prices rose 0.3% in December from the prior month, the same as in November. Excluding the volatile food and energy categories, core prices rose 0.2%, also matching November's figure. Even as inflation has eased, the large price increases for necessities such as groceries, rent, and health care have left many American households feeling squeezed, turning "affordability" issues into high-profile political concerns.

The U.S. economy economy expanded at a strong 4.3% annual rate from July through September as consumer spending, exports and government spending all grew. Tuesday's report from the Commerce Department said U.S. gross domestic product — the economy's total output of goods and services — up from its 3.8% growth rate in the April-June quarter. Analysts surveyed by the data firm FactSet forecast growth of 3% in the period. However, inflation remains higher than the Federal Reserve would like. The Fed's favored inflation gauge — called the personal consumption expenditures index, or PCE — climbed to a 2.8% annual pace last quarter, up from 2.1% in the second quarter.

The Federal Reserve's preferred measure of inflation slowed a bit in September, likely easing the way to a widely expected interest rate cut by the central bank next week. The data, which was delayed for five weeks by the government shutdown, show that inflation was muted in September and will bolster the case for a cut to the Fed's key interest rate at its next meeting Dec. 9-10.

Sales at U.S. retailers and restaurants rose slightly in September as resilient consumers moderated their spending after splurging over the summer. Sales increased 0.2% last month from August, the Commerce Department said, in a report delayed more than a month because of the government shutdown. The retail sales figures suggest that Americans as a whole are still willing and able to boost their spending, a key driver of the economy, despite high prices for groceries, rent, and many imported goods hit by tariffs.

The Federal Reserve cut its key interest rate Wednesday for a second time this year as it seeks to shore up economic growth and hiring even as inflation stays elevated. The move comes amid a fraught time for the central bank, with hiring sluggish and yet inflation stuck above the Fed's 2% target. Compounding its challenges, the central bank is navigating without much of the economic data it typically relies on from the government. The Fed has signaled it may reduce its key rate again in December but the data drought raises the uncertainty around its next moves. Fed Chair Jerome Powell told reporters that there were "strongly differing views" at the central bank's policy meeting about to proceed going forward.

Consumer confidence weakened slightly in October as Americans remain anxious about their future financial prospects. The Conference Board said Tuesday that its consumer confidence index fell by 1 point to 94.6 in October from an upwardly revised September reading of 95.6. Analysts were expecting the reading to come in unchanged from the previous month. One year ago, the reading was 109.5. A measure of Americans' short-term expectations for their income, business conditions and the job market dipped by 2.9 points to 71.5, remaining well below 80, the marker that can signal a recession ahead. However, consumers' assessments of their current economic situation rose 1.8 points to 129.3.

The government shutdown is delaying another major economic report, leaving policymakers at the Federal Reserve with a cloudier picture even as the economy enters a challenging phase of stubbornly persistent inflation and a sharp slowdown in hiring. The shutdown could make things worse for agencies like the Fed if it continues, because government agencies cannot collect the raw data that are then compiled into the monthly reports on jobs, inflation, and other economic trends.