Ahead of State of the Union, what is the state of the US economy?

The economy may seem fine on paper, but many analysts note it's not working for many Americans. Is that a problem?

As President Donald Trump delivers his State of the Union address to Congress on Feb. 24, he’ll likely point to a strong economy as a key indicator of how America is faring.

Indeed, inflation has fallen, even more than most analysts expected. Job growth accelerated in January, also topping economists’ forecasts. And, perhaps more importantly, the economy is about to get an additional boost this spring, as consumers receive bigger tax refunds than in the past thanks to the signature tax and spending legislation passed last year.

But that picture of the economy is at odds with another one, and opposition Democrats may choose to highlight it instead.

Even if inflation has cooled, it’s left prices at levels that make necessities such as groceries unaffordable to many Americans. Growth has been concentrated in a few narrow segments of the economy: health care and social assistance made up essentially all the jobs gained in January, and AI equipment spending is one of the biggest drivers of GDP. In January, meanwhile, a measure of consumer confidence slid to its lowest level since 2014 – worse than even during the depths of the COVID-19 pandemic.

All of that adds up to an economy that may seem fine, if not impressive – but which ultimately isn’t working well for many people. Even as policy flails about wildly, from on-again, off-again tariffs to Supreme Court reversals, from tax cuts to a Federal Reserve being pushed to cut even as inflation remains a concern, the ordinary Americans whose economic lives are in the balance may feel they're being left out of the discussion.