All articles tagged with #economic outlook
US job creation in 2025 slowed to its weakest pace since 2020, with only 50,000 jobs added in December and an average of 49,000 per month for the year, reflecting a cooling labor market despite steady economic growth and Federal Reserve rate cuts. The unemployment rate decreased slightly to 4.4%, but overall job gains remain subdued amid mixed sector performances and ongoing policy debates.
US manufacturing sector contracted for the 10th consecutive month in December, with the ISM PMI dropping to 47.9, the lowest since October 2024, largely due to ongoing tariffs and weak demand, leading to declining factory employment and elevated input costs. Despite some positive signs from AI investments and tax cuts, structural issues and tariff impacts continue to hinder recovery, with a potential Supreme Court ruling on tariffs expected in early 2026.
The US Federal Reserve's December meeting revealed a deep divide among officials over interest rate cuts, with most supporting a modest reduction to support the labor market amid economic uncertainties, but concerns remain about inflation and economic slowdown, leading to cautious outlooks and expectations of holding rates steady in the near future.
The December Federal Reserve meeting revealed deep divisions among policymakers regarding interest rate cuts, with most supporting a modest reduction amid concerns about economic risks and inflation progress, but opinions remain divided about future rate adjustments as new economic data is awaited.
In December, US consumer confidence dropped to its lowest level since the rollout of tariffs, driven by concerns over high prices, inflation, and the impact of tariffs, despite some optimism about future financial prospects. The survey indicates ongoing economic uncertainty, with declining perceptions of the job market and current financial situation, amid mixed economic data showing growth in the third quarter but sluggish outlook for the fourth.
Consumer confidence in the U.S. dropped to its lowest level since April 2025, influenced by concerns over high prices, tariffs, and a sluggish job market, with the confidence index falling to 89.1 in December and perceptions of economic stability weakening.
Americans end the year with a pessimistic view of the country, showing low approval ratings for Congress, President Trump, and other leaders, alongside worsening economic perceptions and dissatisfaction with the nation's direction, following the longest government shutdown in U.S. history.
Kevin Hassett discusses the US economy, asserting that recent job and inflation data indicate stability and room for rate cuts, while addressing immigration policy changes, tariffs, and oil market concerns, emphasizing positive economic trends and policy clarity for 2026.
The article discusses the possibility of a US recession in 2026, highlighting expert opinions and economic indicators that suggest potential risks for the future economy.
The US labor market in 2025 showed signs of slowdown with subdued job creation and a rising unemployment rate, but no signs of a recession. Job growth is expected to remain modest in 2026, with some analysts predicting a jobless expansion, though others see potential for stabilization or growth due to policy changes and economic measures. Overall, rapid job growth of previous years is unlikely to return soon.
On December 19, 2025, major U.S. stock indices closed higher amid a resurgence in AI-related trading, with the S&P 500 posting a weekly gain driven by a tech rally. Federal Reserve President John Williams indicated that recent economic data may have been distorted by the government shutdown, but overall, the economy remains in good shape and is expected to improve in 2026. Inflation data from the Bureau of Labor Statistics suggests a slight underestimation of inflation due to data collection issues during the shutdown.
Despite consumer sentiment near record lows at the end of 2025, Americans continue to spend robustly, driven by job security and rising incomes, although inflation remains a major concern. Expectations for economic improvement in 2026 are cautious, with inflation and interest rate policies likely to influence consumer confidence. Market indices responded positively to the economic outlook.
UK retail sales unexpectedly declined in November despite Black Friday deals, with supermarket sales falling for the fourth consecutive month and consumer confidence reaching a 16-month high, amid ongoing budget-related uncertainties and increased government borrowing, which is higher than expected but still lower than last year.
The Bundesbank warns that Germany's multiyear recession is expected to only gradually improve, with a slow recovery anticipated to extend into 2026.
The ECB has decided to keep interest rates unchanged, reaffirming its commitment to a 2% inflation target, with projections indicating inflation will stabilize around this level by 2028 amid a resilient economy and cautious global risks.