The US second-quarter GDP data released in September showed that the economy was acceptable, but a closer look reveals more signs of weakness. Concerns about the economy may have begun to influence consumer spending decisions. If the US economy were truly as strong as it appears, the Federal Reserve would not have cut interest rates last month. So, what is the real situation?
Before the government shutdown on October 1, the economy was still maintaining a steady pace of expansion. Despite ongoing warnings of a slowdown, the third-quarter GDP is expected to deliver an above-average performance.
However, signs of economic weakness are already evident: the labor market has largely stagnated, consumer confidence continues to decline, inflation is picking up again, and businesses are struggling to survive amidst unpredictable tariff policies.
Government shutdowns typically do not have a…
