U.S. Economy Keeps Defying Recession Calls as Consumers Hold Spending
Wall Street economists are walking back recession forecasts again as household spending and labor demand absorb higher rates and tariffs.
For the third straight quarter, the American economy is on track to grow even as forecasters who were sure a slowdown was imminent rewrite their notes.
Consumer spending remains the engine. Real personal consumption is running at roughly a 2% annual pace, supported by a labor market that is cooling but still adding jobs at a rate consistent with full employment. Households are leaning more heavily on credit, but delinquencies on cards and auto loans have stabilized below pre-pandemic peaks, easing fears of a credit-driven downturn.
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